US July Layoffs Decrease, Hiring Activity Rebounds

TechFlow news, August 6, according to the latest Challenger Job-Cut Report, US layoffs in July fell to 33,429, with hiring plans rebounding; artificial intelligence became the main reason for layoffs for the fifth consecutive month. The report stated that the number of layoffs announced by US employers in July decreased by 27% compared to June, and dropped by 46% compared to the same period last year, marking the lowest monthly total in two years. The total number of layoffs in July was the lowest level since July 2024, when 25,885 layoffs were announced.

As of July, employers have announced 477,033 layoffs, a 41% decrease compared to the number of layoffs announced in the first seven months of 2025. This is the fifth time this year that layoff numbers are lower than the same period last year. The pace of layoffs dropped significantly this summer. Layoff plans remain primarily concentrated in the technology sector, with artificial intelligence remaining the dominant topic, as investment in this technology is reshaping corporate organizational structures. However, Andy Challenger, Chief Revenue Officer of Challenger, stated: "Hiring numbers increased by 25% compared to last year, so, although artificial intelligence is changing the labor market, it is not dismantling the employment situation." (Jin10)