Layoff plans ticked up last month, with employers citing AI
Last edited Thu Apr 2, 2026, 08:15 AM - Edit history (2)
Source: Yahoo! Finance
Yahoo! Finance
Layoff plans ticked up last month, with employers citing AI
US employers announced 60,620 job cuts last month,
Emma Ockerman
Thu, April 2, 2026 at 7:52 AM EDT 1 min read
Layoff plans rose in March from a month earlier as employers leaned on AI, according to a new report from the global outplacement firm Challenger, Gray & Christmas. ... US employers announced 60,620 job cuts last month, with planned reductions piling up in the tech sector -- primarily at Dell, Challenger said. That followed February's slowdown in planned layoffs.
While job cut announcements were down sharply from March 2025, but that's largely the DOGE factor. ... "Removing the wave of federal layoffs announced in February and March of last year, job cut announcements in 2026 are closely following the pattern of 2025," Andy Challenger, the firm's chief revenue officer, said in a statement.
Now, "companies are shifting budgets toward AI investments at the expense of jobs," Challenger said. "The actual replacing of roles can be seen in technology companies, where AI can replace coding functions. Other industries are testing the limits of this new technology, and while it can't replace jobs completely, it is costing jobs."
Challenger's data adds to this week's batch of mixed information on the state of the labor market, which has been stuck in low hiring, little firing, and payroll growth supported mostly by healthcare. ADP reported Wednesday that private job gains were steady last month, while Labor Department data posted Tuesday showed February's hiring rate hit its lowest level since early in the pandemic. ... The Labor Department's much-anticipated jobs report, which will include March's unemployment rate, will be published Friday morning.
Emma Ockerman is a reporter covering the economy and labor for Yahoo Finance. You can reach her at emma.ockerman@yahooinc.com.
Read more: https://finance.yahoo.com/economy/article/layoff-plans-ticked-up-last-month-with-employers-citing-ai-115205398.html
Original text:
https://www.challengergray.com/blog/challenger-report-march-cuts-rise-25-from-february-ai-leads-reasons/
Apr 02 Challenger Report: March Cuts Rise 25% From February, AI Leads Reasons
U.S.-based employers announced 60,620 job cuts in March, up 25% from 48,307 cuts announced in February. It is down 78% from the 275,240 cuts announced during the same month last year, according to a report released Thursday from global outplacement and executive coaching firm Challenger, Gray & Christmas.
"Removing the wave of federal layoffs announced in February and March of last year, job cut announcements in 2026 are closely following the pattern of 2025. Last year it was Government, Retail, and Technology. This year, it's Technology, Transportation, and Healthcare," said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.
In the first quarter, employers announced 217,362 job cuts, the lowest Q1 total since 2022, when 55,696 cuts were recorded. It is down 16% from the 259,948 recorded in the fourth quarter of 2025, and down 56% from the 497,052 cuts announced in the first quarter of 2025.
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