US employers announced 33,429 job cuts in July, marking the lowest monthly total in two years. This figure is down 27% from June and 46% from July 2025. Through the first seven months of 2026, total announced job cuts reached 477,033, which is a 41% decrease from the 806,383 cuts announced during the same period in 2025. This indicates a significant slowdown in layoff activity and a stabilization of the labor market after a turbulent previous year.
Despite the overall decline in layoffs, the technology sector continues to be the primary source of job cuts. Tech companies announced 9,867 cuts in July, bringing their year-to-date total to 149,023. This represents a 67% increase compared to the first seven months of 2025 and accounts for 31% of all job cuts this year. Financial firms were the second-most affected industry, with 3,157 cuts in July and 18,626 year-to-date, a 31% decrease from their 2025 figures.
Artificial intelligence (AI) has been the leading stated reason for job cuts for the fifth consecutive month, accounting for 10,970 cuts in July, or 33% of the total. Year-to-date, AI has been cited in 112,713 job cut announcements, approximately 24% of all cuts in 2026. Other significant reasons for layoffs in July included market and economic conditions (7,960 cuts) and company closings (6,060 cuts). While AI is reshaping the labor market, hiring plans are also up, with employers announcing plans to hire 16,095 workers in July, a 47% increase from June and the highest July total since 2022. Year-to-date hiring plans are up 25% compared to 2025.
