US employers announce 33,429 job cuts in July

6th Aug 2026 12:20

(Sharecast News) - US employers announced 33,429 job cuts in July, according to Challenger, Gray & Christmas, down 27% from June and 46% below the same month last year to mark the lowest monthly total in two years.

Artificial intelligence remained the top driver of reductions for a fifth straight month, accounting for 10,970 cuts, while the tech sector once again led industry‑level declines with 9,867 planned layoffs, followed by financial services at 3,157, government at 2,962 and services at 2,581.

So far this year, companies have announced 477,033 job cuts, down 41% from the 806,383 recorded in the first seven months of 2025.

Technology has contributed the largest share with 149,023 cuts year‑to‑date, ahead of transportation at 41,748, healthcare/products at 34,426, services at 23,942 and government at 20,752.

Hiring plans also improved, with employers announcing 16,095 new roles in July, the strongest July reading 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.

Reporting by Iain Gilbert at Sharecast.com