Outplacement firm Challenger, Gray & Christmas said Thursday that companies planned to cut 33,429 jobs in July, down from 45,849 in June and 62,075 in July 2025 and the lowest monthly total since July 2024.
The largest layoff count in July was again in the technology sector, accounting for 9,867 job cuts, while artificial intelligence was cited as the key reason for 10,970 of total layoffs intentions, the fifth straight month that AI was the most cited reason.
"The pace of layoffs fell dramatically this summer," said Andy Challenger, the company's chief revenue officer. "Layoff plans continue to be announced primarily in tech, and artificial intelligence is still the story, as investments in the technology reshape organizations."
There have been 477,033 job cuts in the first seven months of 2026, down from 806,383 in the same period in 2025.
There were 16,095 hiring plans announced in July, up from the 10,933 hiring plans in June and well above the 3,200 plans announced in July 2025. The aerospace and defense sector led the total with 4,625 hiring plans.
"Hiring has also increased over last year by 25%, so while AI is shifting the labor market, it is not dismantling it," Challenger said.