September Job Cuts Hit Lowest Level Since 2022, Challenger Says

U.S. employers announced 43,281 job cuts in September, down 18% from the 52,881 recorded in August and down 20% from the 54,064 announced in September 2025, according to the report released Thursday by global outplacement and executive coaching firm Challenger, Gray & Christmas. That is the lowest total for the month since 2022, when 29,989 cuts were announced.

The national picture shows a sustained slowdown in layoff activity. Through September, employers have announced 573,195 job cuts, down 39% from the 946,426 announced in the first nine months of 2025 and the lowest January-to-September total since 2022, when 209,495 cuts were recorded. September marks the seventh month this year with fewer cuts than the same month a year earlier. Third-quarter announcements totaled 129,591, down 43% from the 226,242 in the second quarter and down 36% from 202,118 in Q3 of last year. Excluding the Government sector, cuts are down 15% year to date (550,185 versus 646,671).

"Companies are in a wait-and-see period right now. Employers are facing high energy costs, an uncertain war in Iran, a rate hike that could make hiring more expensive, plus the likelihood of surging healthcare costs. We've seen layoff activity subside over this year, and September continues to illustrate this point," said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.

Beneath the improving headline, the sector detail diverges sharply. Technology announced 10,799 cuts in September, up 77% from 6,103 in August, bringing its year-to-date total to 165,925 — up 54% from 107,878 through September 2025. Tech accounts for 29% of all job cuts announced in 2026, more than any other industry. Transportation follows with 44,430 cuts this year, up 190% from 15,329. FinTech cuts are up 331% to 7,806, and Food producers are up 76% to 29,693 after announcing 7,326 in September, including 5,396 from Washington orchards and agricultural employers, all filed through WARN notices citing a downturn in demand.

Non-Profits announced 4,742 cuts, their highest monthly total of 2026 and up sharply from 672 in September 2025. Services firms announced 3,306 cuts, down 51% year to date to 30,084. Health Care/Products announced 1,780 in September, for a year-to-date total of 37,417, down 6%. Media announced 266 cuts; its News subset — broadcast, digital, and print — announced 174, down 9% from 191 a year ago, with year-to-date News cuts of 1,901, up 9%.

Twenty-one of the 30 industries Challenger tracks have announced fewer cuts than at this point last year. Government leads the declines, down 92%. Retail is down 83% to 14,434, Telecommunications down 64% to 7,446, and Warehousing down 53% to 19,881.

For workers, the reason codes matter as much as the totals. Artificial Intelligence remained the leading cited reason year to date, appearing in 120,136 job cut announcements, about 21% of all cuts, and ranking fifth in September with 3,961. Market and Economic Conditions led September reasons with 8,789 cuts, or 20% of the month's total, and ranks second for the year at 114,124. Demand Downturn accounted for 6,515 September cuts, the highest monthly total since February 2023, when 7,770 cuts were attributed to it. Closings drove 7,719 cuts in September and 99,092 for the year; Restructuring was cited for 6,243 and 79,892 respectively.

The hiring side is more cautious. Employers announced plans to hire 90,787 workers in September, up from 12,325 in August as seasonal announcements began, but down 23% from 117,313 in September 2025 and the lowest September total since 2011, when 76,551 hiring plans were recorded. Spirit Halloween and Michaels announced a combined 62,000 seasonal hires, versus 100,800 last September. Year to date, announced hiring plans total 210,612, up 3% from 204,939 — a lead that had been much wider before the lighter seasonal season narrowed it. Retail led September hiring with 65,150 announced positions, followed by Aerospace/Defense with 5,300 and Utility with 4,200.

"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 added. If seasonal announcements stay muted through October, job seekers in retail and logistics will face a holiday market offering fewer temporary openings than at any point in more than a decade.