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    Home»Jobs & AI»US Employers Announce 83,387 Job Cuts in April – ‘The Money for Those Roles Is Going to AI,’ Says Challenger

    US Employers Announce 83,387 Job Cuts in April – ‘The Money for Those Roles Is Going to AI,’ Says Challenger

    By Henry KanapiMay 10, 20262 Mins Read
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    US employers have announced tens of thousands of job cuts, with tech firms spearheading the layoffs, according to the global outplacement firm Challenger, Gray & Christmas.

    In its latest report, Challenger says US firms reduced headcount by 83,387 jobs last month, representing a 38% increase from March and the third highest monthly total since 2009.

    Tech led last month’s round of job cuts, after the sector announced 33,361 roles were laid off. The figure marks a 33% increase from the same period last year and the highest year-to-date total for the sector since 2023, when 113,944 technology cuts were recorded.

    Andy Challenger, chief revenue officer at Challenger, says the pattern points to a fundamental reallocation of corporate spending.

    “Technology companies continue to announce large-scale cuts and are leading all industries in layoff announcements. They are also often citing AI spend and innovation. Regardless of whether individual jobs are being replaced by AI, the money for those roles is.”

    Beyond technology, government entities announced plans to cut 9,149 jobs in April, the highest monthly total for the public sector since March 2025, when the Department of Government Efficiency (DOGE) drove 216,915 cuts. The sector has announced 11,419 layoff plans so far this year, down 96% from the 282,227 cuts announced through April 2025.

    Warehousing announced 5,743 cuts in April for a year-to-date total of 10,512, down 65% from the same period last year. Meanwhile, the services sector cut 4,110 jobs in April for a year-to-date total of 10,797, a 50% decrease from the same period in 2025.

    Zooming out, Challenger says that year-to-date, employers have announced 300,749 job cuts, down 50% from the 602,493 cuts recorded through April 2025. The firm’s data suggests that the broader labor market remains more resilient than the monthly headline figure implies.

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