U.S. companies announced 62,075 job cuts in July 2024 – a 140% YoY spike from 25,900 in July 2023. This marks the second-highest July total in a decade, trailing only pandemic-driven cuts in 2020.
🔍 Key Drivers
- Artificial Intelligence:
- Companies cite AI adoption as primary factor for workforce reductions.
- Tariff Impacts:
- Rising trade barriers squeeze profit margins, forcing restructuring.
- Economic Uncertainty:
- Retail sector contractions trigger store closures and layoffs.
💻 Tech Sector Breakdown
| Company | Cuts | Context |
|---|---|---|
| Intel | 15% of workforce | Strategic pivot toward AI chip focus |
| Microsoft | 9,000 employees | Second round of 2024 layoffs |
Industry trend: While investing billions in AI, tech giants aggressively cut costs elsewhere.
🚗 Sector-Wide Ripple Effects
- Automakers: Accelerated layoffs due to tariff-driven supply chain costs.
- Government Contractors: Federal budget cuts force nonprofits/healthcare providers to reduce staff.
- Retail: Weak consumer spending prompts downsizing.
📊 Historical Context
July 2024’s layoffs exceed:
- July 2022 (25,000)
- July 2021 (19,000)
- 10-year July average (38,200)