U.S. employers announced 83,387 job cuts in April, a 38% increase from March, as companies continued pulling back on hiring and restructuring operations around AI investment, economic pressure, and changing business conditions.
The latest data from Challenger, Gray & Christmas shows layoffs remain volatile across the labor market, even as year-to-date cuts are still running well below 2025 levels. Through the first four months of 2026, employers announced 300,749 job cuts, down 50% from the same period last year.
AI continues driving workforce reductions
For the second consecutive month, AI was the leading reason companies gave for layoffs.
Employers attributed 21,490 April job cuts — roughly 26% of all announced layoffs — to AI-related changes. So far in 2026, AI has been connected to 49,135 planned cuts, accounting for about 16% of all announced layoffs this year.
Technology companies remained the largest source of layoffs in April, announcing 33,361 cuts during the month and 85,411 so far this year. That marks a 33% increase from the sector’s layoffs during the same period in 2025.
Many companies are redirecting budgets toward AI development and infrastructure, even when jobs themselves are not directly being automated.
More industries feeling pressure
The cuts are spreading well beyond tech.
Government entities announced 9,149 layoffs in April, while Warehousing cut 5,743 jobs and the Services sector announced 4,110 reductions.
Several industries tied to manufacturing and industrial production also saw significant increases in layoffs this year. Pharmaceutical companies announced 7,440 job cuts through April, up 500% year over year. Chemical companies increased layoffs by 167%, while Industrial Goods Manufacturers raised cuts by 71%.
Many companies cited a combination of AI adoption, foreign competition, shifting consumer behavior, tariffs, and economic uncertainty as reasons for workforce reductions.
Media layoffs also continued climbing. News organizations across broadcast, print, and digital media announced 839 cuts through April, up 46% from the same period last year.
Hiring plans slow sharply
At the same time layoffs increased, hiring plans fell dramatically.
Employers announced plans to hire just 10,049 workers in April, down 69% from March and 38% lower than April 2025.
Technology hiring plans were down more than 50% year over year, while industries that fueled hiring growth last year — including entertainment and insurance — have slowed significantly.
Some sectors are still expanding. Automotive, Aerospace/Defense, Consumer Products, and Industrial Goods all reported increases in planned hiring compared to last year.
But overall, companies appear to be moving more cautiously into the second half of 2026.
Companies are still spending aggressively on AI infrastructure and innovation, but many are simultaneously reducing payrolls, restructuring teams, and delaying hiring decisions elsewhere.
For workers, that creates a more unpredictable environment than the headline employment numbers alone suggest. Even as some sectors continue hiring, organizations across industries are redesigning roles, reallocating budgets, and preparing for a workplace shaped more heavily by automation and AI-driven productivity.
