U.S. job cuts fall 18% in September, lowest for the month since 2022
- U.S. employers announced 43,281 job cuts in September, down 18% from August.
- AI was cited for 3,961 September cuts and 120,136 this year.
- Technology cuts rose 77% to 10,799 in September.
- September hiring plans were the lowest for the month since 2011.
ILLINOIS, UNITED STATES — U.S. employers announced 43,281 job cuts in September, down 18% from August and the lowest total for the month since 2022, while seasonal hiring plans came in at their weakest September level since 2011.
Cuts were down 20% from the 54,064 announced in September 2025.
AI remains the top reason for the year
Through September, employers announced 573,195 job cuts, down 39% from the first nine months of 2025, according to outplacement firm Challenger, Gray & Christmas.
Artificial intelligence (AI) was the fifth-most cited reason in September with 3,961 cuts, but it remains the leading reason year to date, cited in 120,136 announcements, or about 21% of all cuts.
Technology companies announced 10,799 cuts in September, up 77% from August, and the sector accounts for 29% of all cuts announced in 2026.
Third-quarter layoff plans totaled 129,591, down 43% from the second quarter.
Food producers announced 7,326 cuts, the second straight month above 7,000, with Washington orchards and agricultural employers accounting for 5,396.
Services firms announced 3,306 cuts in September, including 1,116 tied to contract losses.
“Companies are in a wait-and-see period right now,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.
Seasonal hiring stays muted
Employers announced plans to hire 90,787 workers in September, down 23% from September 2025.
“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,” Challenger said.
Spirit Halloween and Michaels are the only retailers to have announced seasonal hiring plans this year, a combined 62,000 hires, compared with 100,800 announced by seasonal employers last September.
Year to date, hiring plans total 210,612, up 3% from the same period in 2025.
Twenty-one of the 30 industries Challenger tracks have announced fewer cuts than at this point last year.
Demand downturn accounted for 6,515 cuts in September, its highest monthly total since February 2023.
With AI still the leading reason for cuts this year and seasonal hiring muted, employers are leaning on flexible capacity rather than permanent headcount.
That favors workforce management models that scale up and down with demand, including offshore outsourcing for peak-season support.
Firms planning for 2027 can compare flexible capacity options among the top BPO companies worldwide.
Related news
- U.S. job openings hold at 7.1Mn in August as hiring stays flat · 1 Oct
- August job cuts rise 58% as restructuring returns · 8 Sep
- AI-linked layoffs hit 205,000 workers in 2026: report · 12 Aug
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
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