U.S. July layoffs fall to 33,429 as hiring activity increases

According to the latest Challenger job-cut report, U.S. layoffs in July dropped to 33,429, with hiring plans showing signs of recovery; artificial intelligence remained the primary cause of layoffs for the fifth consecutive month. The report indicated that U.S. employers announced 27% fewer layoffs in July compared to June and 46% fewer than the same period last year, marking the lowest monthly total in two years. July’s total layoffs were the lowest since July 2024, when 25,885 job cuts were announced. Through July, employers have announced 477,033 layoffs, a 41% decline compared to the first seven months of 2025. This marks the fifth time this year that layoffs have been lower than the same period last year. Layoff rates have dropped significantly this summer. Job cuts remain concentrated in the technology sector, with artificial intelligence continuing to dominate discussions as investments in this technology reshape corporate structures. However, Andy Challenger, Chief Revenue Officer at Challenger, Gray & Christmas, stated: “Hiring has increased by 25% compared to last year, so while AI is transforming the labor market, it is not dismantling employment.” (Jinshi)