Layoffs tapered off considerably in the U.S. in June, providing a more positive outlook on the labor market than in the first half of the year. But AI still influences hiring decisions, especially in tech. The latest report on U.S. job cuts has yielded key takeaways and what they may mean for employers and workers.
U.S. Job Cuts Declined in June
Employers in the U.S. announced 45,489 job cuts in June, a decrease of 53% from 97,006 in May. It was also the lowest month since December, indicating that hiring slowed during that month.
Layoffs Were Lower Than Last Year
Cuts in announced jobs fell by 4% from June 2025. The year-over-year drop signalled that employers were making fewer job cuts than they did the same month last year.
Year-to-Date Layoffs Have Fallen Sharply
About 40% fewer new job cuts were announced by employers in the first half of 2026 than in the same period of 2025, when announced layoffs were 744,308.
Tech Continues to Lead Layoffs
In June, the technology industry announced 15,503 job cuts, representing almost one-third of all announced layoffs in the first half of 2026. Tech continues to be the biggest sector to cut jobs.
AI Remains the Leading Cause
As businesses restructure to focus on AI, 14,029 jobs were announced as being cut in June, with artificial intelligence being the top contributor to the job losses.
Companies Are Restructuring Around AI
Changes in workplace needs across the technology industry make businesses more likely than ever to automate some jobs and allocate budgets for AI investments and new AI digital capabilities, says Challenger.
Economic Conditions Also Played a Role
The second most common reason for businesses to make job cuts, after AI, was market or economic conditions, accounting for 12,470 announced cuts in June.
Tech Workforce Is Evolving
As AI use grows, technology firms are still tweaking their workforces, industry experts say. Many organisations are reshaping teams and investing in new skills and roles to support future AI projects.
Layoff Trends Differ From Last Year
The report indicates that part of the high number of people laid off in 2025 was due to the federal government’s DOGE initiative. This means that comparisons to 2026 are of a different employment environment.
AI is Transforming the Workplace
The latest statistics indicate that AI is impacting workforce planning on a wider scale than one company. As businesses continue to use automation and new tech, they are still reevaluating their roles to support future growth.
