Sharp Increase in Job Cuts Across the US

In a startling revelation, Challenger, Gray & Christmas Inc. reported that job cuts in the United States surged to 62,075 in July, marking a 29% increase from the previous month and a 140% jump compared to the same period last year.

Sector-Wise Layoffs Highlight Economic Strain

The technology sector led the layoffs in 2025 with 89,251 jobs cut, up 36% year-on-year. Retail wasn't far behind, witnessing a 249% annual increase with 80,487 layoffs. Non-profits faced the most dramatic rise, letting go of 17,826 individuals, a 413% increase from 2024.

Expert Insights on the Trend

Andrew Challenger, Senior Vice President at Challenger, Gray & Christmas, pointed to Federal budget cuts and the rise of artificial intelligence as key factors. "The impact of DOGE's budget cuts extends beyond government to non-profits and healthcare. AI alone accounted for over 10,000 job cuts last month, with tariff concerns affecting nearly 6,000 jobs this year," he explained.