# Layoffs march lower in June, though AI remains major reason behind job cuts: Challenger > Source: > Published: 2026-07-01 11:39:33+00:00 Layoff announcements dropped in June, and job cuts are trending lower halfway through the year compared to 2025, according to the global outplacement firm Challenger, Gray & Christmas. Overall, US employers announced just under 46,000 job cuts last month, down a smidge from the almost 48,000 layoffs planned in June 2025, Challenger said. Artificial intelligence once again was the leading reason behind planned layoffs. So far this year, meanwhile, employers have announced 443,604 job cuts, compared to 744,308 through the first half of 2025, according to Challenger's data. Hiring plans are also trending in a positive direction, with employers expecting to hire 91,405 workers so far this year compared to 82,932 during the first half of 2025. That news — combined with a string of strong employment reports and data showing [stronger-than-expected job openings](https://finance.yahoo.com/economy/article/job-openings-were-better-than-expected-in-may-at-76-million-142310111.html) — helps the perception that the labor market is showing signs of strength. "The pace of layoffs cooled considerably in June, similar to plans last June, and as is typical for summer months," Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas, said in the report. "That said, the cuts we are seeing remain concentrated in technology, and artificial intelligence continues to reshape how companies think about headcount." *Emma Ockerman** is a reporter covering the economy and labor for Yahoo Finance. You can reach her at **emma.ockerman@yahooinc.com**.* **Sign up for the Mind Your Money newsletter** **Read the latest financial and business news from Yahoo Finance**