Updated · Challenger, Gray & Christmas, Inc. · Aug 6
U.S. Job Cuts Fall to 33,429 in July as AI Drives 33% of Layoffs
Updated
Updated · Challenger, Gray & Christmas, Inc. · Aug 6
U.S. Job Cuts Fall to 33,429 in July as AI Drives 33% of Layoffs
3 articles · Updated · Challenger, Gray & Christmas, Inc. · Aug 6
Summary
33,429 job cuts were announced by U.S. employers in July, down 27% from June and 46% from a year earlier, marking the lowest monthly total since July 2024.
10,970 of those cuts were tied to AI—33% of the monthly total—making it the fifth straight month AI was the top cited reason; AI-linked cuts have reached 112,713 this year.
9,867 July cuts came from technology, which now accounts for 149,023 layoffs in 2026, or 31% of all announced cuts, even as overall layoff plans have fallen 41% year to date.
16,095 hiring plans were announced in July, up 47% from June and far above 3,200 a year earlier, suggesting AI is reshaping jobs rather than broadly dismantling the labor market.
Transportation remains a notable pressure point with 41,748 cuts this year, up 303%, while government layoffs have plunged 93% from 2025, underscoring how this year’s job losses are concentrated in fewer sectors.