September snapshot
U.S. companies announced 43,281 layoffs in September, down from 52,881 in August and below the 54,064 reported a year earlier. It is the lightest September since 2022, when 29,989 cuts were recorded.
The figures come from Challenger, Gray & Christmas.
The trend and the quarter
By the end of September, employers had announced 573,195 cuts in 2026, down 39% from the 946,426 tallied over January-September 2025. Excluding Government, the tally is 550,185 so far this year versus 646,671 a year ago, a 15% drop.
In the third quarter, companies announced 129,591 job cuts, down 43% from 226,242 in the second quarter of 2026 and 36% below the 202,118 reported in the third quarter of 2025. Challenger added, "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."
Where the cuts are - and why
Technology led September's reductions with 10,799 cuts, up 77% from 6,103 in August. Year to date, the sector has announced 165,925 cuts, 54% more than the 107,878 through September 2025, and it represents 29% of all 2026 reductions.
In September, food producers disclosed 7,326 layoffs, the second consecutive month topping 7,000, pushing the year-to-date figure to 29,693. That represents a 76% increase from 16,835 through September 2025. WARN filings indicate Washington orchards and other agricultural employers were responsible for 5,396 of the month's cuts, citing a demand downturn.
Non-Profits reported 4,742 cuts in September, ranking third among industries and marking the sector's peak monthly total of 2026, up from 672 in September 2025. For the year, Non-Profits have announced 16,531 cuts, down 28% from 22,823 through September 2025. Services firms reported 3,306 cuts in September and 30,084 year to date, down 51% from 61,590, with 1,116 tied to contract losses.
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Transportation announced 2,151 in September and 44,430 for the year, up 190% from 15,329. Health Care/Products announced 1,780 in September and 37,417 in 2026, down 6% from 39,917 through September 2025.
Media announced 266 cuts in September and 5,174 so far this year, down 63% from 14,060 in the same period last year. Challenger tracks News as a subset of Media that includes broadcast, digital, and print. News saw 174 cuts in September, down 9% from 191 in September 2025. Year to date, News reductions come to 1,901, an increase of 9% from 1,738.
Across 2026, Technology leads with 165,925 cuts, followed by Transportation at 44,430, Health Care/Products at 37,417, Consumer Products at 30,652, and Services at 30,084. Of the 30 industries tracked, 21 have announced fewer cuts than a year ago, led by Government, down 92%. Retail stands at 14,434, a drop of 83% from 86,233. Warehousing has fallen 53% to 19,881, and Telecommunications has declined 64% to 7,446.
The top-cited cause for September's cuts was Market and Economic Conditions, with 8,789, representing 20% of cuts for the month. For the year to date, it has been named in 114,124 cuts, the second-highest tally among reasons. Closings accounted for 7,719 in September and 99,092 year to date.
Demand Downturn drove 6,515 in September, the highest monthly total for this reason since February 2023's 7,770. Restructuring was cited for 6,243 in September and 79,892 year to date. Artificial Intelligence was the fifth most cited reason in September with 3,961 cuts, about 9% of the month, and has been mentioned in 120,136 cuts this year, approximately 21% of all cuts, making it the leading reason year to date.
Hiring plans and the investor angle
In September, employers said they intended to bring on 90,787 workers, rising from 12,325 in August as seasonal plans start, yet still 23% under the 117,313 announced in September 2025. That marks the thinnest September since 2011, when 76,551 were recorded. Seasonal announcements have been subdued to this point in the year. Only Spirit Halloween and Michaels have shared seasonal hiring plans, totaling 62,000, versus 100,800 last September.
Year to date in 2026, companies have outlined plans to hire 210,612 workers, a 3% increase from 204,939 through September 2025. Through August, hiring was tracking well ahead of last year's pace, but a softer seasonal push narrowed the lead. In September, Retail topped the list with 65,150 planned hires, with Aerospace/Defense next at 5,300 and Utility at 4,200.
The bottom line: announced layoffs are below last year's pace, while September hiring plans mark the weakest September since 2011 and seasonal retail hiring is running lighter than in 2025.
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