American employers slowed down layoffs in February after spike at the beginning of 2026
After posting record numbers in the month of January, layoffs in the U.S. eased in February, according to new data from global outplacement and executive coaching firm Challenger, Gray & Christmas. In the second month of the year, employers announced 48,307 job cuts, down 55% from the record cuts announced in January, and lower than the cuts announced in the same month last year as well. The report also found that hiring plans have cooled compared to last year ahead of the Labor Department’s upcoming jobs report.
In January, employers announced a total of 108,435 layoffs, which was the highest since January 2009, the final months of the Global Financial Crisis. The number was up 118% from the same period in 2025, adding to concerns about a weakening labor market. However, layoff announcements eased in February, dropping 55% from the previous month and 74% from the 172,017 cuts announced in the same month last year.
The combined total for the first two months of the year now comes out to be 156,742, the lowest total since 2022. However, it is also the fifth-highest January-February total recorded since 2009. "February's dip is a nice reprieve from the elevated job cut plans to start the year. With U.S. involvement in a growing war in Iran, the end of Q1 may bring more layoff plans as companies tighten belts amid uncertainty and higher costs," Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas, said in the report.
Technology led with most layoffs announced, with 11,039 cuts announced in February, bringing the total for the sector to 33,330 in 2026. The report noted that tech is responding to several market pressures, with Artificial Intelligence being the big story. Other hurdles for the sector include global regulatory concerns, a slowdown in digital advertising due to tariffs, and economic uncertainty, which have all made it difficult for companies to retain or hire new talent, as per the report.
Another concerning trend was observed in the Industrial Manufacturing sector, which cut 4,109 jobs in February, bringing the 2026 total to 5,685. As per Challenger, it marks an increase of 143% from the 2,341 cuts announced in the sector in the same month last year. Still, after tech, transportation emerged as the sector with the second most job cuts announced this year, with a total of 31,702, up 872% from the 3,261 cuts announced in the first two months of 2025.
On the other hand, hiring plans also rose 140% in February, as per the report from 5,306 in January to 12,755 last month. But, on a year-on-year basis, hiring has slowed 63% from the hiring plans announced in February 2025, when employers announced 34,580 job openings. For the first two months combined, hiring cooled off by 56% compared to the same period last year. Furthermore, Reuters estimated that the jobs report from the Labor Department for February will mark a slowdown as well, with nonfarm payrolls forecast to increase by 59,000.
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