Tech Layoffs Jump 77% in September as Overall Job Cuts Fall

A quieter month for layoffs, with one big exception

US employers announced 43,281 job cuts in September, according to outplacement firm Challenger, Gray & Christmas. That is down 18% from August's 52,881 and 20% below the 54,064 cuts announced in September 2025 2. It is the lowest September total since 2022, when announcements came in at 29,989 2.

The technology sector moved the other way. Tech companies announced 10,799 cuts in September, the most of any industry, and up 77% from the prior month 41. Food producers came next with 7,326 cuts, followed by services with 3,306 1. The jump is notable because August tech cuts stood at 6,103, the third-highest sector total that month behind food producers 1.

One data point is inconsistent. Trading Economics also cites a tech figure of 9,867 alongside its 10,799 number, without clear context for the difference 1. The 10,799 figure matches what Challenger-based reporting describes as the 77% increase 4.

Year-to-date: far below 2025, but tech dominates

Through the first nine months of 2026, employers announced 573,195 job cuts. That is 39% fewer than the 946,426 announced over the same period in 2025 2. Much of that decline comes from last year's large government reductions. Excluding the government sector, announcements are down a more modest 15%, at 550,185 versus 646,671 2.

Challenger notes this is the seventh month this year in which cuts came in below the same month a year earlier 2. Third-quarter layoff plans totaled 129,591 4.

Tech's share of the total is large. The sector has announced 165,925 cuts so far this year 1, about 29% of all job cuts in 2026 4. Even as overall layoffs ease, technology remains the single biggest source of announced job losses.

Challenger described the broader mood as a "wait-and-see period" for companies 1. That fits a pattern of employers holding off on large moves in either direction.

AI: top reason for the year, smaller role this month

Artificial intelligence was cited for 3,961 September cuts, roughly 9% of the monthly total 34. Over the full year, AI is the leading reason employers give for cuts, with 120,136 attributed to it, or about 21% of all announcements 3.

The monthly picture is less dramatic than the annual one. In August, restructuring was the most-cited reason, with 16,173 cuts, while AI fell to fourth place with 3,462 1. So AI-linked cuts rose slightly from August to September but did not top the monthly list.

That 21% figure should be read with some care. It reflects the reasons employers give in their announcements. It does not independently measure how many roles automation has actually replaced. Still, AI's steady presence in the data shows how often companies now frame cuts in those terms.

The hiring side looks weaker

The more worrying part of the report may be hiring, not layoffs. Employers usually ramp up seasonal hiring plans in September ahead of the holidays. Challenger's release says that typical surge did not happen 2. Outsource Accelerator reports September hiring plans were the lowest for the month since 2011 4. Benzinga framed the weak seasonal figures as a possible holiday hiring freeze 3.

There is a partial counterpoint. Challenger's headline says overall hiring plans still remain above 2025 levels 2. Year-to-date hiring therefore isn't collapsing, but the expected seasonal lift is missing.

Government data points the same way. The Bureau of Labor Statistics reported that nonfarm payrolls rose by just 29,000 in September, far below the 84,000 economists expected 5. Unemployment ticked up to 4.2% from a forecast 4.1%. CNBC notes the rise was largely driven by more people entering the labor force 5. Markets rose on the report, as traders priced in a high likelihood that the Federal Reserve would hold rates steady at its October meeting 5.

Reading the numbers

Taken together, the data suggest a labor market where companies are neither firing nor hiring much. Fewer layoffs would normally be welcome news. Paired with thin payroll growth and the weakest September hiring plans in more than a decade, it looks more like caution than strength.

Tech stands out within that picture. Cuts in the sector are rising even as they ease elsewhere. Tech also makes up nearly a third of the year's announcements, and AI is the most-cited reason for cuts across the economy. Tech workers face a bigger risk of layoffs than other workers right now.

For job seekers in general, the larger problem may be how few openings employers are planning. September's 77% tech jump is one month of data and may not hold. But until hiring picks up, low layoff totals offer limited comfort.