US Private Sector Job Cuts Slowed in April

According to the Challenger, Gray & Christmas, Inc. (CG&C) Job Cut Announcement Report released Thursday, US-based employers announced 64,789 job cuts in April, a 28% decline from 90,309 cuts in March. This is also a 3.3% decline from the 66,995 cuts announced in April 2023.

Year-to-date, companies have announced 322,043 jobs cuts, a decline of 4.6% from 337,411 during the same period last year.

CG&C said the leading reason for job cuts remains “cost cutting,” which has resulted in 73,767 job cuts, followed by “restructuring,” which accounted for 55,947. Of note, “artificial intelligence” was cited for 800 job cuts in April, the highest total since Challenger first tracked cuts for this reason in May 2023, when 3,900 cuts were announced due to this reason. Since then, companies cut 5,430 job cuts due to AI, either because the companies were pivoting to developing it or because it replaced tasks and roles.

According to CG&C, job cuts were widespread with the automotive sector experiencing the largest number of cuts in April, followed by education, health care/products, technology, and media/news.

US employers announced plans to hire 9,802 workers in April, the lowest total for the month since 9,322 hiring plans were announced in April 2013. For the year, employers have announced plans to hire 46,597 workers—the lowest total in the first four months of the year since 2016, when 38,445 hiring plans were recorded.