U.S. employers announced 60,620 job cuts in March, up 25% from 48,307 in February but down 78% from the 275,240 reported in March last year, according to Challenger, Gray & Christmas.
For the first quarter, announced layoffs totaled 217,362, the lowest first-quarter figure since 2022. That marks a 16% decline from the fourth quarter of 2025 and a 56% drop compared to the same period last year.
Layoffs are concentrated in a different mix of industries than a year ago. Technology, transportation, and healthcare account for the largest share of cuts so far in 2026, replacing last year’s concentration in government, retail, and tech.
Technology companies announced 18,720 cuts in March, bringing the year-to-date total to 52,050, up 40% from the same period in 2025. Recent reductions include workforce cuts at Dell Inc., reported layoffs at Oracle, and ongoing job reductions within Meta’s Reality Labs division.
Transportation recorded 32,241 cuts in the first quarter, a 703% increase from a year earlier and the highest level on record for the sector. Healthcare followed with 23,520 cuts, also a record high for the first quarter, while education layoffs rose 170% to 11,467. Financial firms announced 9,397 cuts, down 41% year over year. Media layoffs totaled 1,492, down 18%, while cuts in the news sector reached 639, up 12%.
Artificial intelligence was the leading reason for layoffs in March, cited in 15,341 job cuts, or 25% of the monthly total. Closings accounted for 13,931 cuts, restructuring for 8,726, and market and economic conditions for 6,597.
For the year to date, market and economic conditions remain the top driver with 45,103 cuts, followed by restructuring (37,916), closings (37,405), and contract losses (31,817). AI ranks fifth with 27,645 cuts, representing roughly 13% of all announced layoffs.
Hiring plans increased in March, rising 157% to 32,826 from 12,755 in February and up 149% from March 2025. Year-to-date hiring plans total 50,887, down 6% from the same period last year. Seasonal roles accounted for just over 21% of March’s hiring plans, with automotive and entertainment leading all sectors.
