U.S.-based employers announced 83,387 job cuts in April, up 38% from March, according to a report released Thursday by Challenger, Gray & Christmas.
The April total was down 21% from the 105,441 cuts announced during the same month last year. Still, it marked the third-highest April layoff total since 2009 outside the pandemic period. Employers have announced 300,749 job cuts so far in 2026, though that figure remains roughly 50% below the same period last year.
Hiring plans weakened sharply alongside the increase in layoffs. Companies announced plans to hire 10,049 workers in April, down 69% from March and down 38% year-over-year.
"Technology companies continue to announce large-scale cuts and are leading all industries in layoff announcements," said Andy Challenger, workplace expert and chief revenue officer at Challenger, Gray & Christmas. "Regardless of whether individual jobs are being replaced by AI, the money for those roles is."
AI Drives Layoffs
Technology companies led all sectors with 33,361 announced job cuts in April and 85,411 layoffs so far this year, up 33% year-over-year. Artificial intelligence also led all reasons cited for layoffs for the second straight month, accounting for 21,490 announced cuts in April.
The report comes as companies including Amazon.com Inc. (NASDAQ: AMZN) and Meta Platforms Inc. (NASDAQ: META) continue restructuring around AI investments and automation.
Sen. Bernie Sanders recently warned that automation could displace hundreds of thousands of workers, while Rep. Ro Khanna (D-Calif.) proposed a federal jobs initiative as part of what he called an "AI for the People" agenda.
Workers Turn Cautious
The layoff surge coincides with signs of growing worker anxiety.
A recent New York Federal Reserve labor market survey showed the share of workers expecting to switch employers fell to its lowest level since 2021. Job satisfaction tied to wages and promotion opportunities also hit record lows.
U.S. GDP grew just 0.5% in the fourth quarter of 2025, while ADP chief economist Nela Richardson recently said only 28% of workers feel their jobs are safe from elimination.
The broader economic backdrop has also become more uncertain. Commodity prices recently climbed to their highest level in more than a decade, reigniting inflation concerns as energy and raw material costs rise globally.
Challenger said tariffs, the ongoing war in Iran, automation, AI and shifting consumer behavior were contributing to layoffs in industrial sectors.