U.S. employers announced 54,064 job cuts in September, marking a 37% decrease from the previous month’s total of 85,979, according to data released by Challenger, Gray & Christmas. Despite this decline, the year-to-date total of job cuts reached 946,426, the highest since 2020 and a 55% increase over the same period last year.
“It’s very likely job cut plans are going to surpass a million for the first time since 2020 and for the ninth time in our series,” said Andy Challenger, Senior Vice President at Challenger, Gray & Christmas. “Previous periods with this many job cuts occurred either during recessions, or as was the case in 2005 and 2006, during the first wave of automations that cost jobs in manufacturing and technology.”
Technology companies have been particularly affected. Since January 2024, they have announced 241,866 job cuts. In September alone, tech firms reported 5,639 layoffs. This represents an 8% decrease compared to last year’s figures for the sector. Challenger noted that disruptions caused by artificial intelligence (AI) are contributing to both job losses and challenges for those seeking new positions: “Tech firms are undergoing incredible disruption with AI that is not only costing jobs, but also making it difficult to land positions, particularly for entry-level engineers,” he said. “Tech leaders have stressed that AI is changing the nature of work, and more companies are requiring their teams be trained on it.”
The report identified that in September there were 7,000 job cuts directly attributed to AI. The cumulative number of layoffs due to AI now stands at 17,375 for the year; an additional 20,219 jobs lost were linked to broader technological updates.
Retailers also experienced significant workforce reductions. Through September they announced 86,233 job cuts—a rise of over threefold compared to last year’s total at this point. “Now is when we typically see retailers bulk up for the holidays, but so far plans have been slow to come, reflecting caution. With lower consumer confidence and tariff pressures ahead, we predict the hiring season will be muted,” Challenger said.
Regionally, Eastern states recorded substantial increases in announced layoffs—up by nearly threefold from last year—with Washington D.C.-based federal agencies accounting for much of this surge. New Jersey saw one of the largest state-level increases in announced job losses.
Some states saw fewer layoffs than last year; Massachusetts dropped by nearly a third while Connecticut experienced an even steeper decline.
Hiring announcements remained subdued throughout the year. Employers planned to add just under 205,000 jobs so far—a drop of almost two-thirds compared with hiring plans through September last year. Most of this reduction stemmed from fewer seasonal hiring announcements; September marked the lowest level of such plans since 2009.
“Right now we’re dealing with a stagnating labor market, cost increases and a transformative new technology,” Challenger said. “With rate cuts on the way we may see some stabilizing in the job market in the fourth quarter but other factors could keep employers planning layoffs or holding off hiring.”
A full employment situation report from the U.S. Bureau of Labor Statistics was unavailable for September due to a federal government shutdown.
