U.S. Employer Layoff Plans Cool in July, Hiring Plans Rise
By Jessica Coacci
U.S.-based employers announced 33,429 job cuts in July, down 27% from the 45,849 cuts announced in June, according to a report from global outplacement and executive coaching firm Challenger, Gray & Christmas.
Technology again led all sectors, announcing 9,867 job cuts in July, and accounting for 31% of all job cuts announced this year.
"The pace of layoffs fell dramatically this summer. Layoff plans continue to be announced primarily in tech, and artificial intelligence is still the story, as investments in the technology reshape organizations," said Andy Challenger, chief revenue officer of Challenger, Gray & Christmas.
Artificial intelligence led all reasons for job cuts, with 10,970 announced during the month, or 33%. It is the fifth consecutive month AI has been the leading reason. However, outside of the tech sector, recent jobless claims figures suggest employers are holding back from any widespread layoff plans.
Meanwhile, hiring plans increased. Employers announced plans to hire 16,095 workers in July, up 47% from the 10,933 plans announced in June. Challenger said hiring demand is showing up in aerospace, energy and manufacturing.
A broader look into the labor market will come Friday, when the Labor Department releases its employment situation report for July.
Write to Jessica Coacci at jessica.coacci@wsj.com
(END) Dow Jones Newswires
August 06, 2026 05:44 ET (09:44 GMT)
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