US-based employers announced 33,429 job cuts in July, the fewest in two years and well below May's and last year's totals. The technology sector again led all industries in layoffs, and artificial intelligence remained the top cited reason for cutting jobs.
US-based employers announced 33,429 job cuts in July, the lowest monthly total in two years. That is down 27% from the 45,849 layoffs announced in May, and 46% below the 62,075 cuts announced in July last year.
It is the fifth time this year that cuts have come in lower than the same month a year earlier. Through July, employers have announced 477,033 job cuts in 2026, down 41% from the 806,383 cuts announced over the same seven months of 2025.
The technology sector again led all industries in job cuts in July, with 9,867 layoffs announced, bringing the sector's year-to-date total to 149,023 — a 67% increase over last year's total through July. Artificial intelligence remained the single largest cited reason for cuts: firms attributed 10,970 layoffs to AI in July alone, the fifth straight month AI has topped the list of reasons given.
According to Challenger: "The pace of layoffs fell dramatically this summer." Layoff plans continue to be announced primarily in tech, and AI is still the reason companies give for cutting staff. Through July, AI has been cited in 112,713 job cut announcements this year, about 24% of all cuts.
Source: Investinglive
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