Tech Sector Layoffs Surge 67% Year-Over-Year Even as Overall Job Cuts Hit Two-Year Low

HR Dive · United States · Aug 10, 2026

U.S. employers announced 33,429 job cuts in July, the lowest monthly total in two years, with overall layoffs down 46% year-over-year, according to Challenger, Gray and Christmas. However, the technology sector bucked the positive trend with 9,867 job cuts in July — a 67% year-over-year increase — with AI-driven restructuring cited as a primary factor. Nonfarm payroll employment also declined by 23,000 jobs in July per BLS, while the unemployment rate dipped to 4.1% partly due to falling labor force participation. Staffing firms serving tech clients should note continued volatility in that vertical, even as broader placement conditions show modest improvement.