Jul 01 Challenger Report: June Layoffs Cool to 45,849, Down 53% From May; AI Leads Reasons for Fourth Consecutive Month
U.S.-based employers announced 45,849 job cuts in June, down 53% from the 97,006 cuts announced in May. June’s total is down 4% from the 47,999 cuts announced in the same month last year, and marks the lowest monthly total since December 2025, according to a report released Wednesday from global outplacement and executive coaching firm Challenger, Gray & Christmas.
Through June, employers have announced 443,604 job cuts, down 40% from the 744,308 cuts announced in the first half of 2025. It is the second-highest January-to-June total since 2020, trailing only last year’s government-driven surge. This is the fourth time this year job cuts were lower than the corresponding month one year earlier.
Employers announced 226,242 job cuts in the second quarter of 2026, up 4% from the 217,362 cuts announced in the first quarter. It is down 9% from the 247,256 cuts announced in the second quarter of 2025.
“The pace of layoffs cooled considerably in June, similar to plans last June, and as is typical for summer months. That said, the cuts we are seeing remain concentrated in technology, and artificial intelligence continues to reshape how companies think about headcount,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.
Which Industries Cut The Most in May?
Technology
Technology again led all sectors, announcing 15,503 job cuts in June for a total of 139,156 in 2026. That is an increase of 83% from the 76,214 cuts announced in this sector through June 2025. Technology now accounts for nearly a third of all job cuts announced this year.
“Tech remains the epicenter of this year’s cuts. AI is the dominant force as companies are restructuring around it, automating roles, and reallocating budgets toward new capabilities. The sector is being reshaped in real time,” said Challenger.
Services
Services followed in June with 4,296 cuts, bringing the year-to-date total to 21,361. That is down 56% from the 48,736 cuts announced in this sector through June 2025.
Food
Food producers and manufacturers announced 3,955 cuts in June for a total of 13,075 in 2026, up 30% from the 10,093 cuts announced through June 2025.
Health Care/Products
Health Care companies and health products manufacturers, including hospitals, announced 2,761 cuts in June for a year-to-date total of 33,175, up 10% from the 30,076 cuts announced through the first half of 2025.
Transportation
Transportation has announced the second-most cuts among all industries this year with 40,970, up 387% from the 8,419 announced during the same period in 2025, as the sector continues to absorb elevated costs and shifting trade conditions.
Media & News Cuts
The Media industry has announced 3,488 cuts so far in 2026, down 27% from the 4,752 cuts announced during the same period last year.
News, which Challenger tracks as a subset of Media and includes broadcast, digital, and print, has announced 1,038 cuts year-to-date, down 9% from the 1,139 News cuts announced through June 2025.
WHY ARE COMPANIES CUTTING
In June, Artificial Intelligence led all reasons for job cuts, with 14,029 announced during the month, or 31%. So far this year, AI has been cited in 101,743 job cut announcements, approximately 23% of all cuts.
Since 2023, when AI was first tracked as a distinct reason, it has been cited in 173,568 job cut announcements.
Market and Economic Conditions followed for the month with 12,470 cuts for a total of 82,115. Closings accounted for 11,837 in June and 78,570 for the year. Restructuring was cited for 2,412 cuts and Loss of Contract for 1,696 (38,755 through June 2026).
HIRING PLANS IN 2026
Employers announced plans to hire 10,933 workers in June, down 44% from the 19,536 plans announced in May, though well above the 3,191 announced in June 2025. So far this year, companies have announced plans to hire 91,405 workers, up 10% from the 82,932 plans announced through the first half of 2025.
“Employers appear to be modestly hiring more workers this year, which would buck the trend since 2020,” said Challenger.