Tech Layoffs Surge in September Amid Broader Industry Cuts
Overall U.S. layoff announcements decreased in September, but tech sector job cuts saw a significant 77% rise. The industry has accounted for over 165,925 job cuts year-to-date.
U.S. technology companies announced a 77% increase in layoff announcements in September compared to the previous month, according to a report from outplacement firm Challenger, Gray & Christmas. While overall layoff announcements by U.S. employers fell 18% from August to September, the tech sector experienced a significant rise in job cuts.
In September, tech firms announced 10,799 layoffs, up from 6,103 in August. Year-to-date through September, technology companies have announced a total of 165,925 job cuts. This represents a 54% increase compared to the same period in 2025.
Major tech companies announcing significant job cuts in September included Uber, which reduced its workforce by 10% (approximately 3,300 roles), along with Microsoft and PayPal. Other sectors experiencing notable layoffs in September included food, non-profits, services, transportation, and health care.
The report identified "Market and Economic Conditions" as the primary driver for September layoffs, accounting for 20% of all cuts. Closings, downturns in demand, and restructuring were also significant factors. Artificial intelligence was cited as the reason for 9% of September's job cuts.
However, looking at the year-to-date figures, AI has emerged as the leading cause for job reductions. Through September 2026, AI has been cited in 120,136 layoff announcements, representing approximately 21% of all announced cuts and making it the top reason for the year so far.