US Job Cuts Fall to 6-Month Low

US-based employers announced 45,849 job cuts in June 2026, the lowest since December 2025, down 53% from May and 4% lower than in the same month last year. The tech sector announced the most cuts (15,503), followed by services (4,296), food producers and manufacturers (3,955) and health care companies (2,761). "The pace of layoffs cooled considerably in June, similar to plans last June, and is typical for summer months. That said, the cuts we are seeing remain concentrated in technology, and AI continues to reshape how companies think about headcount", according to Andy Challenger from Challenger, Gray & Christmas. Through June, employers announced 443,604 job cuts, down 40% from 744,308 cuts announced in the first six months of 2025, led by tech (139,156). Meanwhile, employers announced plans to hire 10,933 workers in June, pushing the year-to-date total to 914,405 workers, 10% more than in the first half of 2025.

US-based employers announced 97,006 job cuts in May 2026, the most since January, compared to 83,387 in April. It is the highest May total since 2020 and also marks the third straight month that cuts have risen. AI was the main reason for the cuts, leading for a third straight month. Technology announced 38,242 job cuts in May, the highest monthly total for the sector since August 2024. Transportation (6,909), services (6,288) and fintech (5,731) followed. “On top of the headline AI story, we’re seeing a sharp rise in cuts tied to acquisitions and mergers and a jump in bankruptcy-related losses, which tells me companies are restructuring aggressively as they reposition for an AI-driven economy,” said Andy Challenger from Challenger, Gray & Christmas. So far this year, employers have announced 397,755 cuts, down 43% from last year, when reductions to the federal workforce drove totals to historic highs. Stripping out that distortion, 2026 is running roughly even with 2024.

US-based employers announced 83,387 job cuts in April 2026, the most in three months, compared to 60,620 in March, but down 21% from the same month last year. April’s total is the third highest for an April month since 2009, with tech (33,361) announcing the most jobs, followed by warehousing (5,743) and services (4,110). Artificial Intelligence led all reasons for job cuts for the second month in a row, with 26% of total cuts. So far this year, employers have announced 300,749 job cuts, down 50% from the same period last year. Tech was the leading contributor (85,411) and AI has been cited for 49,135 cuts this year, and it is the third-leading cause of layoff plans. “Technology companies continue to announce large-scale cuts and are leading all industries in layoff announcements. They are also often citing AI spend and innovation. Regardless of whether individual jobs are being replaced by AI, the money for those roles is,” said Andy Challenger from Challenger, Gray & Christmas.