Labor & Employment Law Daily Wrap Up, REPORTS—April’s total job cuts are third highest since 2009, says new report, (May 12, 2026)

By WK Editorial Staff

“Technology companies continue to announce large-scale cuts and are leading all industries in layoff announcements.

According to a new report released by Challenger, Gray & Christmas, a global outplacement and executive coaching firm, U.S.-based employers announced 83,387 job cuts in April, up 38 percent from the 60,620 job cuts recorded in March. April’s total is the third highest since 2009, Challenger notes, with 105,441 job cuts recorded in April 2025 and 671,129 in April 2020. This year, employers have announced 300,749 job cuts so far, down 50 percent 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.

Industries most impacted. Technology announced 33,361 job cuts in April for a total of 85,411 this year. That is a 33 percent increase from the layoffs announced in this sector in the same period last year.

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 percent of which were due to Department of Government Affairs Actions. For the year, the sector has announced 11,419 layoff plans, down 96 percent 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 percent 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, which represents a 50 percent decrease from the cuts announced in this sector through April last year.

Other industries cutting jobs included pharmaceutical companies, which have announced plans to cut 7,440 jobs through April, an increase of 500 percent 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.

Chemicals and industrial goods. Chemical companies likewise saw an upward trend in cuts, announcing 4,975 job cuts, an increase of 167 percent 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, the report indicates, industrial goods manufacturers announced plans to cut 7,799 job cuts, up 71 percent 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.

Media and news also saw cuts, with news (defined to include broadcast, digital, and print) showing a trend up 46 percent from cuts announced during the same period last year.

Artificial intelligence. AI led all reasons for job cuts for the second month in a row, according to the Challenger report, with 21,490 announced during the month, 26 percent of total cuts. This reason has been cited for 49,135 cuts this year, Challenger notes, and it is the third-leading cause of layoff plans. AI accounts for roughly 16 percent of all 2026 job cut plans, up from 13 percent through March. Other reasons included closings, cost-cutting, and voluntary severance/buyouts. So far in 2026, the report finds, 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.

At the same time, hiring plans fell 69 percent, down from 32,826 in March to 10,049 in April. They are down 38 percent from the hiring plans announced in April 2025. Government led April hiring, followed by technology and food, but year-to-date automotive leads all industries with hiring, followed by entertainment/leisure, aerospace/defense, and government.

News: Reports EconomicNews IndustryNewsTrends Layoffs