Layoffs surged 140% in July, marking the steepest increase since the early days of the COVID-19 pandemic. The rise signals growing instability in the labor market, with tech and white-collar jobs among the hardest hit.

The number of job cuts announced in July reached 62,075, a substantial increase from the 25,885 cuts announced in July 2024.

Analysts point to automation and AI disruption as key drivers, alongside broader economic headwinds. The sudden jump has rattled economists who warn that unemployment numbers could rise further in the months ahead.

Key Drivers

• Government Downsizing
  The federal government, particularly due to initiatives like the Department of Government Efficiency (DOGE), has been a major contributor to job cuts, announcing 292,294 cuts so far in 2025.

• Artificial Intelligence (AI)
  The adoption of AI and other technological updates has been a significant factor, with over 10,000 job cuts in July directly attributed to AI and 20,219 tied to technological updates this year.

• Tariffs and Economic Conditions
  Tariffs and broader market and economic uncertainties have also contributed to layoffs, particularly affecting sectors like retail and automotive.
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Between the Lines — The Readovia Cut

This spike underscores a deeper shift: layoffs are no longer just cyclical. They are structural. As automation, downsizing and tariffs accelerate, traditional job protections are lagging behind, leaving workers vulnerable in ways policymakers have yet to address.