Overview
- Companies announced 33,429 job cuts in July 2026, the lowest monthly total in two years, a 27% decline from June and 46% decline from July 2025.
- Employers cited artificial intelligence as the leading reason for cuts, attributing 10,970 layoffs in July and 112,713 so far this year, but Challenger warns the label is applied inconsistently across firms.
- The technology sector accounted for the largest share of cuts with 9,867 announced in July and 149,023 year-to-date, making tech the focal point of this year’s reductions.
- Hiring announcements rose alongside cuts, with 16,095 planned hires in July and 107,500 year-to-date—up about 25%—yet ADP’s private-payroll report showed softer private hiring and the BLS jobs report remains the authoritative check.
- For workers the mix of fewer announced cuts and stronger hiring plans could mean uneven opportunities by industry, with demand growing in aerospace, energy, and manufacturing and close watch needed on how companies define ‘AI-related’ layoffs and how official payroll data updates this picture.