By Jessica Coacci
U.S. based employers announced 45,849 job cuts in June, down 53% from 97,006 cuts announced in May, according to a report from the global outplacement and executive coaching firm Challenger, Gray & Christmas.
Employers in the technology sector led the decline with 15,503 staff reductions in June, a 83% increase in the sector through June last year. Still, last month's total job cuts are down 4% from the same month a year ago, and marks the lowest monthly total since December 2025.
"The pace of layoffs cooled considerably in June, similar to plans last June, and as is typical for summer months," said Andy Challenger, chief revenue officer of Challenger, Gray & Christmas.
The report found that artificial intelligence was the leading reason cited for job cuts, with 14,029 announced during the month. Major tech firms have cited AI in parts of their restructuring plans as they invest billions of dollars building out AI infrastructure.
"AI is the dominant force as companies are restructuring around it, automating roles, and reallocating budgets toward new capabilities," Challenger said.
However, other data show that layoff rates have remained at stable levels, and despite broader economic uncertainty tied to the conflict in Iran, job growth has held up relatively well this spring from its cooling cycle last year.
So far in 2026, companies have announced plans to hire 91,405 workers, up 10% from the 82,932 plans announced through the first half of 2025, according to the Challenger report.
A broader look into the labor market will come Thursday, when the Labor Department releases its employment situation report for June.
Write to Jessica Coacci at jessica.coacci@wsj.com