US job cuts tumble 53% in June; AI still top cause

US-based employers announced 45,489 job cuts in June, a 53% drop from May's 97,006 and a 4% decline from the same month last year, according to Challenger, Gray & Christmas data. The June total is the lowest monthly figure since December 2025.

Year-to-date cuts stand at 443,604, down 40% from the 744,308 recorded in the first half of 2025. The 2025 spike was driven largely by the DOGE initiative, the firm noted.

Tech sector layoffs continue to dominate. June saw 15,503 job cuts from tech firms, accounting for nearly a third of all cuts reported in the first half of the year. The primary driver is restructuring around artificial intelligence.

"Tech remains the epicenter of this year's cuts," the firm stated. "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."

AI led all reasons for June layoffs, behind 14,029 job cuts. Market and economic conditions followed, accounting for 12,470 cuts.

Challenger, Gray & Christmas is an outplacement and executive coaching firm that tracks layoff announcements from US employers.