Sep 02 Challenger Report: August Job Cuts Up 58%, Consumer Products, Food Lead
LOWEST AUGUST SINCE 2022; HIRING PLANS UP 37% OVER LAST YEAR
U.S.-based employers announced 52,881 job cuts in August, up 58% from the 33,429 cuts announced in July. It is down 38% from the 85,979 layoff plans announced in the same month last year, and marks the lowest August total since 2022, according to a report released Thursday from global outplacement and executive coaching firm Challenger, Gray & Christmas.
Through August, employers have announced 529,914 job cuts, down 41% from the 892,362 cuts announced in the first eight months of 2025. Excluding the Government sector, job cut announcements are down 15% (507,685 versus 597,089 through August 2025). It is the sixth time this year cuts are lower than the corresponding month one year earlier, and the lowest January-to-August total since 2022, when 179,506 layoff plans were announced.
“This is the quietest August since 2022, but is generally on average for the month since the mid-2010s. What we’d like to see with low layoffs is an increase in hiring activity. While companies are making plans to hire more workers than last year, according to our numbers, it doesn’t appear those positions are being filled quickly,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.
WHICH INDUSTRIES CUT THE MOST IN AUGUST?
Consumer Products
Consumer Products led all sectors in August with 10,057 cuts, its heaviest month of the year, driven by announcements at Procter & Gamble and Estée Lauder. The sector has announced 28,574 cuts in 2026, down 20% from the 35,641 announced through August 2025.
Food
Food producers announced 7,982 cuts in August, the second-most of any industry, bringing the year-to-date total to 22,367. That is up 75% from the 12,761 cuts announced in this sector through August 2025. Tyson accounted for nearly a third of the month’s total attributed to a historic cattle shortage.
Technology
Technology announced 6,103 cuts in August, its lowest monthly total of 2026, for a year-to-date total of 155,126. That is an increase of 52% from the 102,239 cuts announced in this sector through August 2025. Technology still accounts for 29% of all job cuts announced this year, more than any other industry.
Financial
Financial firms announced 4,286 cuts in August for a year-to-date total of 22,912, down 49% from the 44,986 cuts announced in this sector through August 2025.
Telecommunications
Telecommunications announced 4,113 cuts in August, nearly all from a single restructuring announcement. The sector has announced 7,446 cuts this year, down 62% from the 19,629 announced through August 2025.
Government
Government announced 1,477 cuts in August for a year-to-date total of 22,229, down 92% from the 295,273 cuts announced through August 2025, when federal workforce reductions drove the year’s totals.
Transportation
Transportation has announced the second-most cuts among all industries this year with 42,279, up 271% from the 11,381 announced during the same period in 2025, as the sector continues to absorb elevated costs and shifting trade conditions.
Media & News
The Media industry announced 480 cuts in August and has announced 4,908 so far in 2026, down 64% from the 13,729 cuts announced during the same period last year.
News, which Challenger tracks as a subset of Media and includes broadcast, digital, and print, announced 416 cuts in August, the highest monthly total since May 2025 when 462 News job cuts were recorded. It is up 222% from the 129 recorded in August 2025. Year-to-date News cuts total 1,727, up 12% from the 1,547 announced through August 2025.
WHICH INDUSTRIES ARE CUTTING THE MOST IN 2026?
Technology leads all industries with 155,126 cuts announced through August, followed by Transportation with 42,279, Health Care/Products with 35,637, Consumer Products with 28,574, and Services with 26,778.
Twenty of the 30 industries Challenger tracks have announced fewer cuts than they did at this point last year. The decline is steepest in Government, down 92%. Retail has announced 13,369 cuts, down 84% from 83,656. Warehousing is down 55% to 18,589, and Telecommunications is down 62% to 7,446.
The increases are concentrated in Technology, up 52%, Transportation, up 271%, FinTech, up 305% to 7,347, and Food, up 75%.
WHY ARE COMPANIES CUTTING?
Restructuring led all reasons for job cuts in August with 16,173 announced during the month, or 31%. It is the highest monthly restructuring since January’s 20,044, and the first month since February that Artificial Intelligence did not lead. So far this year, Restructuring has been cited in 73,649 job cut announcements.
Market and Economic Conditions followed for the month with 15,260 cuts for a total of 105,335. Closings accounted for 6,743 in August and 91,373 for the year.
Artificial Intelligence fell to the fourth-most cited reason with 3,462 cuts in August, its lowest monthly total since December 2025 when 142 cuts were attributed to AI. It ends a five-month run, beginning in March, in which AI was the leading monthly reason. So far this year, AI has been cited in 116,175 job cut announcements, approximately 22% of all cuts, and it remains the leading reason year-to-date.
HIRING PLANS IN 2026
Employers announced plans to hire 12,325 workers in August, down 23% from the 16,095 plans announced in July, and up 725% from the 1,494 announced in August 2025. It is the highest August total since 2022, when employers announced 41,985 hiring plans.
So far this year, companies have announced plans to hire 119,825 workers, up 37% from the 87,626 plans announced through August 2025. It is the strongest January-to-August total since 2023.
Aerospace/Defense led all industries in August with 4,025 announced hires, followed by Technology with 2,520 and Industrial Goods with 1,856. For the year, Technology leads with 19,751, followed by Aerospace/Defense with 16,541 and Automotive with 14,937.
“Employers are making plans to add workers, with 46% of those plans coming from manufacturing industries. The questions are how long will it take employers to actually fill these roles and will they find workers with the requisite skills,” said Challenger.