Job Cuts Fall in September; Hiring Plans Up 3% Over 2025 On Weak Early Seasonal Hiring
Publication date: Oct 01SEPTEMBER LAYOFF PLANS FALL TO 43,281; TYPICAL SURGE IN SEASONAL HIRING PLANS ABSENT, BUT HIRING REMAINS ABOVE 2025
U.S.-based employers announced 43,281 job cuts in September, down 18% from the 52,881 announced in August. It is down 20% from the 54,064 layoff plans announced in the same month last year and is the lowest total for the month since 2022, when 29,989 job cuts were recorded, according to a report released Thursday from global outplacement and executive coaching firm Challenger, Gray & Christmas.
Through September, employers have announced 573,195 job cuts, down 39% from the 946,426 cuts announced in the first nine months of 2025. Excluding the Government sector, job cut announcements are down 15% (550,185 versus 646,671 through September 2025). It is the seventh time this year cuts are lower than the corresponding month one year earlier, and the lowest January-to-September total since 2022, when 209,495 layoff plans were announced.
Third quarter layoff plans totaled 129,591, down 43% from the 226,242 layoff plans in Q2 2026, and down 36% from the 202,118 layoff plans announced in the same quarter of last year.
“Companies are in a wait-and-see period right now. Employers are facing high energy costs, an uncertain war in Iran, a rate hike that could make hiring more expensive, plus the liklihood of surging healthcare costs. We’ve seen layoff activity subside over this year, and September continues to illustrate this point,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.
“Hiring plans are up over the year, but we’re not seeing the surge of hiring plans that come with the holiday season, which suggests a very cautious approach,” he added.
Which industries Cut the Most in September?
Technology
Technology companies announced 10,799 cuts in September, up 77% from 6,103 in August. The sector has announced 165,925 cuts this year, up 54% from the 107,878 announced through September 2025. Technology accounts for 29% of all job cuts announced in 2026, more than any other industry.
Food
Food producers announced 7,326 cuts in September, the second straight month above 7,000, for a year-to-date total of 29,693. That is up 76% from the 16,835 cuts announced in this sector through September 2025. Washington orchards and agricultural employers accounted for 5,396 of the month’s cuts, all filed through WARN notices citing a downturn in demand.
Non-Profit
Non-Profit organizations announced 4,742 cuts in September, the third-most of any industry and the sector’s highest monthly total of 2026. That is up from 672 in September 2025. The sector has announced 16,531 cuts this year, down 28% from the 22,823 announced through September 2025.
Services
Services firms announced 3,306 cuts in September, the fourth-most of any industry, for a year-to-date total of 30,084. That is down 51% from the 61,590 cuts announced in this sector through September 2025. Contract losses accounted for 1,116 of the month’s cuts.
Transportation
Transportation announced 2,151 cuts in September. The sector has announced 44,430 cuts this year, the second-most of any industry and up 190% from the 15,329 announced through September 2025.
Health Care/Products
Health Care/Products announced 1,780 cuts in September. The sector has announced 37,417 cuts this year, the third-most of any industry, down 6% from the 39,917 announced through September 2025.
Media & News
The Media industry announced 266 cuts in September and has announced 5,174 so far in 2026, down 63% from the 14,060 cuts announced during the same period last year.
News, which Challenger tracks as a subset of Media and includes broadcast, digital, and print, announced 174 cuts in September. It is down 9% from the 191 recorded in September 2025. Year-to-date News cuts total 1,901, up 9% from the 1,738 announced in the first nine months of 2025.
WHICH INDUSTRIES ARE CUTTING THE MOST IN 2026?
Technology leads all industries with 165,925 cuts announced through September, followed by Transportation with 44,430, Health Care/Products with 37,417, Consumer Products with 30,652, and Services with 30,084.
Twenty-one 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 14,434 cuts, down 83% from 86,233. Warehousing is down 53% to 19,881, and Telecommunications is down 64% to 7,446.
The increases are concentrated in Technology, up 54%, Transportation, up 190%, FinTech, up 331% to 7,806, and Food, up 76%.
Why Are Companies Cutting?
Market and Economic Conditions led all reasons for job cuts in September with 8,789 announced during the month, or 20% of all announced layoff plans. So far this year, Market and Economic Conditions has been cited in 114,124 job cut announcements, the second-most of any reason.
Closings followed for the month with 7,719 cuts for a total of 99,092. Demand Downturn accounted for 6,515 cuts in September, the highest monthly total since February 2023, when 7,770 layoff plans were cited for this reason. Restructuring was cited for 6,243 cuts in September and 79,892 for the year.
Artificial Intelligence was the fifth-most cited reason with 3,961 cuts in September, about 9% of the month’s total. So far this year, AI has been cited in 120,136 job cut announcements, approximately 21% of all cuts, and it remains the leading reason year-to-date.
Hiring Plans in 2026
Employers announced plans to hire 90,787 workers in September, up from the 12,325 plans announced in August, as seasonal hiring announcements have begun. However, it is down 23% from the 117,313 announced in September 2025, and the lowest September total since 2011, when 76,551 hiring plans were recorded.
Announced seasonal hiring is muted so far this year. Spirit Halloween and Michaels are the only Retailers who have announced hiring plans this year, a combined 62,000 seasonal hires. This is compared with seasonal employers’ announcing a combined 100,800 last September.
So far this year, companies have announced plans to hire 210,612 workers, up 3% from the 204,939 plans announced through September 2025. Hiring had been running well ahead of last year’s pace through August, but the gap narrowed considerably with a lighter seasonal hiring season.
Retail led all industries in September with 65,150 announced hires, followed by Aerospace/Defense with 5,300 and Utility with 4,200. For the year, Retail leads with 66,557, followed by Technology with 22,361 and Aerospace/Defense with 21,841.
UPDATE: A previous version of this post implied Michaels and Spirit Halloween decreased their own hiring plans. Those are the only plans that have been announced. Seasonal hiring plans overall are down across seasonal employers.