U.S.-based employers announced 33,429 job cuts in July, down 27% from the 45,849 cuts in June and 46% from the same month last year. This marks the lowest monthly total in two years, according to Challenger, Gray & Christmas. Through July, total cuts stand at 477,033, a 41% drop from the same period in 2025.
Technology continues to lead all sectors with 9,867 cuts in July, bringing the year-to-date total to 149,023—a 67% increase from last year. Tech now accounts for 31% of all cuts. Financial firms followed with 3,157 cuts, while Government announced 2,962, a 93% decrease from 2025's federal workforce reductions.
Artificial Intelligence (AI) remains the top reason for job cuts for the fifth consecutive month, with 10,970 in July (33% of all cuts). Year-to-date, AI is cited in 112,713 cuts, about 24% of the total. Since 2023, AI has been linked to 184,538 cuts.
The impact of AI is nuanced: Visa attributed its 7% reduction to AI-driven efficiency, while a Bronx hospital system eliminated 12 nursing positions after adopting software from Datavant, sparking union grievances. Challenger tracks such cases as "Technological Update (possibly AI)" when AI is alluded to but not explicitly confirmed.
Hiring is on the rise—employers announced 16,095 hires in July, up 47% from June and well above last year's 3,200. Year-to-date hiring plans total 107,500, up 25% from 2025. Aerospace/Defense led July hiring with 4,625, followed by Technology (2,470) and Automotive (2,068). For the year, Tech leads with 17,231 hires.
"The pace of layoffs fell dramatically this summer," said Andy Challenger, workplace expert. "Hiring has increased by 25% over last year, so while AI is shifting the labor market, it is not dismantling it."
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