New York, July 9, 2026, 05:37 (EDT)
- U.S. exchanges planned a normal trading day Thursday. NYSE core trading starts at 9:30 a.m. ET.
- Baker Hughes and Novartis announced more U.S. layoffs, as Microsoft and Coursera kept tech job restructuring on the table.
- AI was listed in 31% of U.S. job cut announcements in June, according to Challenger, Gray & Christmas, which tracks layoffs. The firm said artificial intelligence software that automates certain work was a factor.
Job cuts were back in the market spotlight Thursday as U.S.-listed firms like Baker Hughes and Novartis announced new layoffs, bringing more workforce reductions in energy and healthcare to a field already busy with restructuring at Microsoft and Coursera.
The timing is key since investors don’t just take cuts as a plain recession sign anymore. Firms turn to layoffs to hold margins, put money into AI, work through deals, and move people to units that bring in more.
U.S. regular trading hadn’t started yet. Baker Hughes was last seen at $57.58, up 5.7%. Microsoft dropped 1.4%. Coursera slipped 0.9% in recent quotes. The Energy Select Sector SPDR Fund traded higher; SPDR S&P 500 ETF was down.
Baker Hughes will cut 147 jobs in Houston, according to the Houston Chronicle, which cited information from the Texas Workforce Commission. Jobs hit include manufacturing, engineering, materials, purchasing, and support. The company filed notice July 1 for an Emmott Road site. The WARN notice is required under federal law for big layoffs or closures.
Baker Hughes “continually reviews our portfolio” to stay in line with long-term targets, a spokesperson told the Chronicle. The layoffs come while SLB and Halliburton are also seeing a rough North American spending cycle, with volatile crude prices hitting customer budgets fast. Houston Chronicle
Novartis is set to cut 322 jobs at its East Hanover, New Jersey headquarters in October, NJBIZ reported, citing a state filing. The company said the cuts are meant to “align our organization” to patient, customer, and business demands. Novartis is investing in the U.S. even as it deals with patent pressure on major drugs. NJBIZ
Tech is still the main question for markets. Microsoft is cutting 4,800 jobs this week, or 2.1% of its global staff. That includes 3,200 roles at Xbox, where it’s tried to keep up with Sony’s PlayStation and Nintendo.
Microsoft chief people officer Amy Coleman told employees the jobs “are not being replaced by AI,” according to Reuters. Equisights Research CEO Parth Talsania said the cuts were about “portfolio reallocation and operating discipline,” not a new reason for the stock to move. Talsania said investors are focused on whether revenue from AI can outpace costs. Reuters
Coursera offered a straightforward example tied to a merger. The online learning firm said it plans to cut jobs after its acquisition of Udemy, and expects to book $8 million to $11 million in charges, mostly for severance and employee benefits. Coursera did not say how many roles will go.
June job cuts came in at 45,849, down 53% from May, according to Challenger, Gray & Christmas. The numbers are mixed, not soft. Tech saw the most layoffs again: 15,503 in June, and 139,156 for the year so far. “Tech remains the epicenter,” said Andy Challenger, chief revenue officer. The sector is “being reshaped in real time.” challengergray.com
But there’s a risk layoffs signal trouble for investors, not help. Severance costs can hit savings, falling crude prices can cancel out energy savings, drug patent losses can hurt healthcare profits, and AI costs might still climb faster than returns. If demand slips, trimming staff won’t fix it.
For now, the market focus is pretty direct: which firms can actually use restructuring to help the bottom line, and which just cut because growth’s tough.
