US Firms Announce the Fewest Job Cuts in Two Years

2026-08-06 09:37 By Joana Taborda 1 min. read

US-based employers announced 33,429 job cuts in July 2026, the fewest in two years, down 27% from June and 46% compared with the same month last year.

AI led all reasons for job cuts for a fifth straight month and was responsible for 10.97K during the month.

The tech sector cut the most jobs (9.867K), followed by financial (3.157K), government (2.962K), and services (2.581K).

Through July, employers have announced 477,033 job cuts, down 41% from the 806,383 cuts announced in the first seven months of 2025.

Technology leads all industries with 149,023 cuts announced through July, followed by Transportation with 41,748, Health Care/Products with 34,426, Services with 23,942, and Government with 20,752.

Meanwhile, employers announced plans to hire 16,095 workers in July, the highest July total since 2022.

“Hiring has also increased over last year by 25%, so while AI is shifting the labor market, it is not dismantling it,” said Andy Challenger from Challenger, Gray & Christmas.



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US Firms Announce the Fewest Job Cuts in Two Years
US-based employers announced 33,429 job cuts in July 2026, the fewest in two years, down 27% from June and 46% compared with the same month last year. AI led all reasons for job cuts for a fifth straight month and was responsible for 10.97K during the month. The tech sector cut the most jobs (9.867K), followed by financial (3.157K), government (2.962K), and services (2.581K). Through July, employers have announced 477,033 job cuts, down 41% from the 806,383 cuts announced in the first seven months of 2025. Technology leads all industries with 149,023 cuts announced through July, followed by Transportation with 41,748, Health Care/Products with 34,426, Services with 23,942, and Government with 20,752. Meanwhile, employers announced plans to hire 16,095 workers in July, the highest July total since 2022. “Hiring has also increased over last year by 25%, so while AI is shifting the labor market, it is not dismantling it,” said Andy Challenger from Challenger, Gray & Christmas.
2026-08-06
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 91,405 workers, 10% more than in the first half of 2025.
2026-07-01
US Job Cuts Rise in May
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.
2026-06-04