Mar 05 Challenger Report: February Cuts Plunge, YTD Hiring Falls 56%
LAYOFFS PLUNGE 55% TO 48,307 IN FEBRUARY; HIRING PLANS DOWN 56% YTD
U.S.-based employers announced 48,307 job cuts in February, down 55% from the 108,435 job cuts in January. It is down 72% from the 172,017 cuts announced during the same month last year, according to a report released Thursday from global outplacement and executive coaching firm Challenger, Gray & Christmas.
Through February, employers announced 156,742 job cuts, the lowest January-to-February total since 2022, when 34,309 cuts were recorded in the first two months of the year. It is the fifth-highest January-February total since 2009.
“February’s dip is a nice reprieve from the elevated job cut plans to start the year. With U.S. involvement in a growing war in Iran, the end of Q1 may bring more layoff plans as companies tighten belts amid uncertainty and higher costs,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.
WHICH INDUSTRIES Are CUtting In February?
Technology announced 11,039 job cuts in February for a total of 33,330 in 2026. That is an increase of 51% from the 22,042 cuts in this sector announced in the same period last year.
“Tech is responding to a number of pressures right now. AI is the big story, but there are also global regulatory concerns, a slowdown in digital advertising driven by tariffs and economic uncertainty, and higher costs to both employ workers and access funding, forcing companies to make difficult decisions,” said Challenger.
Education followed with 5,417 job cuts in February for a total of 6,209, a 96% increase from the 3,160 cuts announced through February 2025.
“School districts tend to approve budgets and headcount in February. With declining enrollment, particularly in major cities, federal funding cuts and rising costs, schools are cutting more workers than last year,” said Challenger.
Industrial Manufacturing Last month, companies that provide industrial materials and machinery cut 4,109 jobs for a total of 5,685 in 2026. That is an increase of 143% from the 2,341 cuts announced in this sector through February 2025.
Transportation has announced the second-most job cuts this year with 31,702, up 872% from the 3,261 cuts announced during the same period in 2025. The growing conflict in Iran will likely further impact Transportation companies as oil costs rise and supply chains are disrupted.
Healthcare/Products Healthcare companies and health products manufacturers, including Hospitals, have announced 19,228 job cuts this year, the highest January-February total since 2021, when 20,245 job cuts were recorded in the sector
Media The Media industry announced 630 cuts in February for a total of 1,140, up 22% from the 933 cuts announced through February 2025.
News, which Challenger tracks as a subset of Media and includes broadcast, digital, and print, has announced 324 job cuts in February, primarily on an announcement from the Washington Post. This is the highest monthly total since May 2025 when 462 News cuts were recorded. So far this year, News has announced 389 job cuts, up 20% from the 324 cuts announced during the same period last year.
WHY ARE COMPANIES CUTTING?
In February, store, unit, or department Closings led all reasons for job cuts, with 10,736 announced during the month. Market and Economic Conditions followed with 10,114 cuts. Restructuring was cited for 9,146 job cuts, while Cost-Cutting accounted for 5,636 planned layoffs.
So far in 2026, Market and Economic Conditions lead all reasons year-to-date with 38,506 cuts, followed by Contract Loss with 31,416, Restructuring with 29,190, and Closings with 23,474.
Artificial Intelligence (AI) was cited for 4,680 job cuts in February, approximately 10% of total cuts for the month. So far in 2026, AI has been cited for 12,304 job cut announcements, or 8% of job cut plans.
In 2025, companies referenced AI for 54,836 announced layoff plans, 5% of total cuts during the year. Since 2023, when this reason was first tracked, AI has been cited in 91,753 job cut announcements, approximately 3% of all layoff plans announced in that period.
HIRING PLANS IN 2026
Hiring plans rose 140% in February to 12,755 from 5,306 in January. They are down 63% from the 34,580 hiring plans in February 2025. So far this year, employers have announced plans to hire 18,061, down 56% from 40,669 new hires during the same period in 2025