New Jersey started 2026 with 4,785 announced layoffs. Spirit's sudden shutdown now adds pressure at Newark and Atlantic City airports.

NEWARK, N.J. — New Jersey employers announced 4,785 layoffs in the first three months of 2026. Then the second quarter began, and Spirit Airlines stopped flying.

On May 2, the low-cost carrier ceased all operations after 34 years, grounding its fleet and putting roughly 17,000 jobs at risk nationwide. 

The shutdown includes the airline's Newark Liberty International Airport crew base, which opened in September 2024 with approximately 200 pilots and additional supervisors and support functions.

Industry estimates place the New Jersey impact at roughly 500 to 1,000 positions statewide, though official location-specific figures have not yet been released. Spirit's 2024 announcement described Newark as a "sizeable flight schedule" with expanding support functions, suggesting the 200 pilots were only a portion of the total.

A Spirit WARN notice was not visible in the state's posted WARN archive as of May 4.

First Quarter of 2026 an Omen of Job Cuts

The first quarter of 2026 saw significant pressure. According to the NJ WARN database, the 4,785 planned cuts represented a 30.7 percent increase from the same period in 2025.

The losses span across industries. Amazon noted at least 800 job cuts across its Bergen, Passaic, Hudson and Monmouth County operations. JP Morgan Chase announced 254 cuts from its Jersey City offices; Bristol Myers Squibb dropped a similar amount, 247, from its office in Lawrence Township. Blue Cross Blue Shield and Cigna together have laid off more than 376 employees statewide.

Other companies are also feeling the strain. UBS slashed 103 jobs from its Weehawken location, Fiserv laid off 118 from Berkeley Heights, and Novartis fired 114 at its East Hanover office. Citibank, with 141 jobs cut statewide, represents another part of the financial sector seeing broad reductions.

Even as WARN notices show pressure in several sectors, the state added 5,800 jobs in March and unemployment fell to 4.9 percent, according to the New Jersey Department of Labor. Rutgers University projects that unemployment will rise to 5.2 percent through 2026-2027 before stabilizing.

Spirit Gives up the Ghost, Raises Q2 Concerns

Spirit's shutdown adds a sudden, concentrated blow to a labor market already under pressure. The airline operated at Newark Liberty and Atlantic City International Airport. Its departure leaves Atlantic City without a major commercial carrier and reduces Newark's low-cost options. It also raises questions about the future of air travel as fuel prices rise due to the Iran War. A continued jet fuel shortage could affect other players.

Transportation Secretary Sean Duffy announced that United, Delta, JetBlue, and Southwest would offer "preferential employment interviews" to Spirit workers. The transition may involve re-certification for pilots and retraining for ground staff, though specific timelines are not yet available.

Spirit's bankruptcy trustee, Epiq, is handling claims. Workers can file for unemployment benefits through the New Jersey Department of Labor.

For New Jersey's labor market, the question is whether the second quarter will continue the pressure that made the first quarter heavy with announced layoffs. Another major announcement like Spirit’s could decide that question.

Sources

• New Jersey Department of Labor, WARN Database Q1 2026 (April 6, 2026)

• New Jersey Department of Labor, Employment Report March 2026 (April 30, 2026)

• Spirit Airlines Investor Relations, "Spirit Airlines to Open New Crew Base for Pilots at Newark Liberty International Airport" (May 24, 2024)

• NJBIZ, "Spirit Airlines shuts down, cancels all flights" (May 3, 2026)

• Associated Press, "Spirit Airlines Shuts Down After 34 Years" (May 3, 2026)

• USA Today, "Spirit Airlines Ceases Operations" (May 3, 2026)