U.S. October Job Cuts Highest in 22 Years
Employers across the United States announced a staggering 153,074 job cuts in October, marking the highest level for that month since 2003 and making 2025 the worst year for layoffs since 2009, according to data from outplacement firm Challenger, Gray & Christmas.
The surge in layoffs reflects mounting pressure on companies to reduce costs amid economic uncertainty and rapid technological changes, including the adoption of artificial intelligence (AI). Cost-cutting was cited as the primary reason for layoffs, followed closely by AI-driven restructuring initiatives, according to the report.
Softening consumer spending and higher operational expenses also contributed to the spike in workforce reductions.
The warehousing sector experienced the largest cuts, shedding 47,878 jobs in October alone — a sharp jump from just 984 in September.
The technology sector followed with 33,281 jobs eliminated, while retail, services, and consumer product companies also reported significant reductions.
October 2025 saw a 175% increase in job cuts compared with October 2024 and a 183% increase from September 2025.
Through the first 10 months of 2025, employers have announced a total of 1,099,500 job cuts, a 65% increase from the same period last year and a 44% rise compared with total cuts in 2024.
Analysts note that the 2025 total already surpasses previous post-pandemic trends, making it the worst year for layoffs in over a decade.
Historically, companies have avoided announcing large-scale layoffs in the fourth quarter, particularly ahead of the holiday season, to protect their reputations.
However, the recent surge suggests a shift, as firms appear increasingly willing to restructure despite timing considerations.
The surge in job cuts signals a potential loosening in the U.S. labor market.
Challenger noted that planned hiring through October 2025 reached only 488,077, down 35% from 750,333 in the same period in 2024 — the weakest year-to-date hiring since 2011.
Economists warn that workers affected by layoffs may face extended job searches, especially in industries heavily impacted by automation and AI.
Andy Challenger, chief revenue officer of Challenger, Gray & Christmas, emphasized that while some sectors are simply correcting overexpanded workforces from pandemic-era hiring booms, the combined impact of AI adoption, softening demand, and rising costs is driving a new, widespread wave of layoffs.
The October layoffs underline the transformative pressures reshaping the U.S. labor market.
Companies are increasingly leveraging technology to streamline operations, while workers confront a more uncertain employment landscape.
As 2025 draws to a close, analysts predict that layoffs may continue into the new year, prompting both employers and policymakers to adapt to a rapidly evolving economic environment.
