Tech Cuts 165,925 Jobs in 2026 as September Layoffs Surge 77%

U.S. tech employers have announced 165,925 job cuts through September 2026, a 54% increase from the 107,878 cuts tallied in the first nine months of 2025, according to outplacement firm Challenger, Gray & Christmas.

That single industry accounted for roughly a quarter of all U.S. layoff announcements this year. It also powered a counter-trend in September, when overall job-cut announcements actually fell.

What did the September data show?

Challenger, Gray & Christmas reported that U.S.-based employers announced 43,281 cuts in September, down 18% from 52,881 in August. The headline decline masked a sharp reversal inside the technology sector, where announced cuts rose 77% month over month, from 6,103 in August to 10,799 in September.

The September jump pushed tech's 2026 total past last year's pace. Through September 2025, the industry had reported 107,878 cuts. Through September of this year, that figure climbed to 165,925 — a 54% year-over-year increase and the steepest gap Challenger tracks among major sectors.

Who led the September cuts?

Uber announced the largest single reduction at the start of the month, cutting roughly 3,300 roles, or about 10% of its workforce. The company framed the move as a step to streamline around its most profitable lines.

Microsoft disclosed hundreds of additional cuts tied to an Xbox overhaul that included shifting its next Halo game to Activision. PayPal announced layoffs at its San Jose headquarters as part of a broader cost review.

Which industries shed the most jobs in September?

• Technology: 10,799
• Food: 7,326
• Non-Profit: 4,742
• Services: 3,306
• Transportation: 2,151
• Health Care/Products: 1,780
• Media & News: 266

What's actually driving the layoffs?

Challenger's report names "Market and Economic Conditions" as the top reason for September cuts, accounting for 20% of the month's total. Closings, demand downturn, and restructuring filled the next three slots. Artificial intelligence ranked only fifth.

"Artificial Intelligence was the fifth-most cited reason with 3,961 cuts in September, about 9% of the month's total," the firm wrote.

The year-to-date picture tells a different story. AI moved into the top spot once the data covered a full nine months.

"So far this year, AI has been cited in 120,136 job cut announcements, approximately 21% of all cuts, and it remains the leading reason year-to-date," Challenger, Gray & Christmas reported.

That 120,136 figure exceeds the entire tech industry's 2025 cut count by more than 12,000.

What does the rest of 2026 look like?

Hiring plans across U.S. employers are running 3% above 2025 levels, Challenger said. The firm flagged weak early seasonal hiring, however, and a continued gap between announced cuts and replacement hiring at large technology firms.

For tech specifically, the September spike is unlikely to mark a peak. The industry's 54% year-over-year increase shows no sign of narrowing with a single quarter remaining, and the largest September cuts came from companies with the market capitalizations to set industry tone.

The Challenger report lands as corporate boards prepare fourth-quarter guidance. Investors will read the next monthly update, due in early November, for evidence that October cooled the tech sector or extended a run that has now pushed the industry's 2026 total past 165,000.