U.S.-based employers announced 83,387 job cuts in April, representing a 38 percent increase from the 60,620 cuts recorded in March.
Despite the month-on-month surge, the figure is 21 percent lower than the 105,441 cuts announced in the same month last year.
According to a report released on Thursday by the global outplacement and executive coaching firm Challenger, Gray & Christmas, the total for April is the third highest for that specific month since 2009.
Total job cuts for the year to date reached 300,749, a 50 percent decrease compared to the 602,493 cuts recorded through April 2025.
Workplace expert and chief revenue officer at Challenger, Gray & Christmas, Andy Challenger, noted that technology companies remain at the forefront of these workforce reductions.
He observed that firms in this sector often cite spending on artificial intelligence (AI) and innovation as key drivers, suggesting that even if specific roles are not being directly replaced by AI, the budgets for those positions are being redirected.
Technology and government sectors see notable shifts
The technology sector remains the hardest hit, announcing 33,361 job cuts in April alone.
This brings the sector’s total for the year to 85,411, a 33 percent increase from the 64,118 layoffs announced during the same period last year. This represents the highest year-to-date total for the tech industry since 2023.
In the public sector, federal, state, and local government entities planned to cut 9,149 jobs in April.
While this is the highest monthly total for the sector recently, it remains significantly lower than the massive figures seen in March 2025, which were largely attributed to Department of Government Affairs actions.
Other industries also experienced fluctuations. The warehousing sector announced 5,743 cuts in April, bringing its 2026 total to 10,512.
Meanwhile, the services sector recorded 4,110 job cuts in April, which is a 50 percent decrease compared to the figures from the previous year.
AI and external factors driving industrial layoffs
Pharmaceutical companies have seen a dramatic 500 percent increase in job cut plans this year, reaching 7,440.
Challenger explained that while patent expirations typically trigger layoffs in this field, the sector is currently facing broader disruptions from new technology, shifting consumer behaviour, and government regulations.
Similarly, chemical companies and industrial goods manufacturers reported significant increases in layoffs.
The chemical industry cited AI and foreign competition as primary reasons, while manufacturers are dealing with the impact of tariffs, an ongoing war in Iran, and automation.
Artificial intelligence led all reasons for job cuts for the second consecutive month. In April, AI was responsible for 21,490 job cuts, accounting for 26 percent of the monthly total.
For the year, AI has been cited in nearly 16 percent of all layoff plans, ranking as the third-leading cause behind market conditions and facility closings.
Muted hiring plans for the summer
On the recruitment front, hiring plans fell by 69 percent in April to 10,049 compared to 32,826 in March. This also marks a 38 percent decline from the hiring announcements made in April 2025.
Year-to-date, employers have planned 60,936 new hires, a 13 percent drop from the same period last year.
The automotive industry leads hiring plans for 2026 with 12,258 positions, followed by entertainment and leisure, as well as aerospace and defense.
However, sectors that previously drove growth, such as insurance and technology, have pulled back their recruitment efforts significantly.
Challenger predicted that hiring plans are likely to remain subdued as various factors continue to impact summer travel and business operations across multiple sectors.
