US Employers Announce Fewest Job Cuts in Two Years During July
Key Takeaways
- •US employers announced 33,429 job cuts in July, the lowest monthly figure in two years and a 46% decrease from July 2025.
- •Year-to-date job cuts total 477,033 through July, representing a 41% decline from the 806,383 recorded during the same period in 2025.
- •The technology sector led all industries with 9,867 cuts in July and a year-to-date total of 149,023, marking a 67% increase compared to the same period last year.
- •Artificial intelligence was the top cited reason for job reductions in July for the fifth straight month, accounting for 10,970 layoffs.
- •AI has been cited in 112,713 job cut announcements so far in 2026, representing approximately 24% of all workforce reductions recorded this year.
US-based employers announced 33,429 job cuts in July, representing a 27% decline from the 45,849 layoffs recorded in the prior month. The July total is the lowest monthly figure in two years and marks a 46% decrease compared to the same month last year, when 62,075 cuts were announced.
This is the fifth time in 2026 that monthly job cuts have come in below the corresponding month a year earlier.
Through the first seven months of the year, total announced job cuts stand at 477,033, down 41% from the 806,383 recorded during the same period in 2025. The data is compiled by Challenger, Gray & Christmas, the outplacement and executive coaching firm whose monthly Challenger Report tracks employer-announced workforce reductions — a leading indicator of corporate staffing intentions that is distinct from official government separation data such as the BLS JOLTS survey, which measures actual job losses.
Despite the broader downward trend, the technology sector continued to lead all industries in workforce reductions, highlighting a widening divergence between the overall labor market and the tech industry specifically. Tech companies announced 9,867 job cuts in July, bringing the sector's year-to-date total to 149,023 — a 67% increase compared to the same period last year, even as total cuts across all sectors fell by double digits.
In a statement accompanying the report, Challenger noted:
"The pace of layoffs fell dramatically this summer. Layoff plans continue to be announced primarily in tech, and artificial intelligence is still the story, as investments in the technology reshape organisations. Tech remains the center of gravity for this year's cuts, and AI is still the reason companies give."
Artificial intelligence was once again the single most cited reason for job reductions in July, accounting for 10,970 layoffs. This marks the fifth consecutive month that AI has ranked as the leading cause of announced cuts. So far this year, AI has been cited in 112,713 job cut announcements, representing approximately 24% of all reductions — a share that underscores how AI-driven restructuring has become a persistent structural force in the labor market rather than a one-off disruption.
