May 07 Challenger Report: April Job Cuts Rise 38% from March; YTD Cuts Down 50%
VOLITILITY CONTINUES: APRIL CUTS RISE 38% OVER MARCH; YTD DOWN 50%. AI LEADS REASONS FOR SECOND MONTH IN A ROW
U.S.-based employers announced 83,387 job cuts in April, up 38% from the 60,620 job cuts recorded in March. It is down 21% from the 105,441 cuts announced during the same month last year, according to a report released Thursday from global outplacement and executive coaching firm Challenger, Gray & Christmas
April’s total is the third highest since 2009: 105,441 job cuts recorded in April 2025 and 671,129 in April 2020. So far this year, employers have announced 300,749 job cuts, down 50% from the 602,493 cuts recorded through April 2025.
“Technology companies continue to announce large-scale cuts and are leading all industries in layoff announcements. They are also often citing AI spend and innovation. Regardless of whether individual jobs are being replaced by AI, the money for those roles is,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.
WHICH INDUSTRIES Are CUt The Most in April?
Technology announced 33,361 job cuts in April for a total of 85,411 this year. That is a 33% increase from the 64,118 layoffs announced in this sector in the same period last year. It is the highest year-to-date total for the sector since 2023, when 113,944 Technology cuts were recorded
Entities in federal, state, and local Government announced plans to cut 9,149 jobs, the highest monthly total since the sector cut 216,915 jobs in March 2025, 99.9% of which were due to Department of Government Affairs Actions. (The remainder came from the closing of an U.S. Army Depot.) For the year, the sector has announced 11,419 layoff plans, down 96% from the 282,227 cuts announced through April 2025.
Warehousing announced 5,743 cuts in April for a total of 10,512 so far in 2026. This is down 65% from the 30,057 cuts announced in this sector through April 2025
The Services sector cut 4,110 jobs in April for a total of 10,797. That is a 50% decrease from the 21,781 job cuts announced in this sector through April last year.
OTHER INDUSTRIES CUTTING JOBS
Pharmaceutical companies have announced plans to cut 7,440 jobs through April, an increase of 500% from the 1,238 cuts announced in the same period in 2025.
“Layoffs typically occur at Pharma companies when patents expire, but the sector is also undergoing significant disruptions with new technology, competition, consumer behavior, and government regulations,” said Challenger.
Chemical companies announced 4,975 job cuts, an increase of 167% from the 1,863 cuts announced through April 2025.
“The primary reason cited for Chemical cuts this year is AI, but foreign competition is also at play and causing makers to cut back workers,” said Challenger.
Through April, Industrial Goods Manufacturers announced plans to cut 7,799 job cuts, up 71% from the 4,563 cuts announced in the same period in 2025.
“Tariffs, an ongoing war in Iran, automation and AI, and shifting consumer behavior are all impacting manufacturing companies in a way that is likely to cost jobs,” said Challenger.
The Media industry announced 1,462 cuts in April, nearly doubling the total for the year to 2,954. This is down 18% from the 3,605 cuts announced in this sector through April 2025.
News, which Challenger tracks as a subset of Media and includes broadcast, digital, and print, has announced 200 job cuts in April, for a total of 839. That is up 46% from the 573 cuts announced during the same period last year.
WHY ARE COMPANIES CUTTING?
In April, Artificial Intelligence (AI) led all reasons for job cuts for the second month in a row, with 21,490 announced during the month, 26% of total cuts. This reason has been cited for 49,135 cuts this year, and it is the third-leading cause of layoff plans. AI accounts for roughly 16% of all 2026 job cut plans, up from 13% through March.
Closings followed with 14,782, Cost-Cutting was cited for 12,912, and Voluntary Severance/Buyouts accounted for 9,295 planned layoffs.
So far in 2026, Market and Economic Conditions lead all reasons year-to-date with 53,058 cuts, followed by Closings with 52,187. Restructuring was cited for 42,307 layoff plans, and Contract Loss caused with 34,484 job cuts.
HIRING PLANS IN 2026
Hiring plans fell 69% in April to 10,049 from 32,826 in March. They are down 38% from the 16,191 hiring plans announced in April 2025. So far this year, employers have announced plans to hire 60,936 workers, down 13% from 70,058 new hires announced during the same period in 2025.
Government led April hiring with 2,350 announced positions, followed by Technology with 1,980 and Food with 1,348.
Year-to-date, Automotive leads all industries with 12,258 hiring plans, more than double the 4,874 announced through April 2025. Entertainment/Leisure is second with 8,261, though that figure is down 70% from 28,000 a year ago.
Aerospace/Defense (7,366) and Government (7,268) round out the top four, with Aerospace/Defense up 165% year-over-year and Consumer Products (5,700) and Industrial Goods (3,971) more than doubling their year-ago totals. Several sectors that drove last year’s hiring have pulled back sharply: Insurance is down 79% (2,575 vs. 12,000), Technology is down 51% (2,230 vs. 4,510), and the steep drop in Entertainment/Leisure summer announcements accounts for most of the overall YTD decline.
“With a number of factors potentially impacting summer travel plans as well as how businesses operate across sectors, we predict hiring plans will remain muted,” said Challenger.