Challenger Job Cuts Report

Data Employment

Source: Challenger Gray
Source Link: https://www.challengergray.com/
Frequency: Monthly
Next Release(s): December 4th, 2025 7:30 AM

Latest Updates

U.S. employers announced 153,074 job cuts in October 2025 (+183% MoM, +175% YoY), marking the highest October total since 2003 and signaling intensified layoffs tied to cost-cutting, AI adoption, and weaker demand.
- YTD layoffs reached 1.10M (+65% YoY), already surpassing 2024’s full-year total by +44%, and marking the highest January–October total since 2020.
- Technology led with 33,281 cuts in October (up sharply from 5,639 in September), bringing the YTD total to 141,159 (+17% YoY), reflecting restructuring tied to AI and efficiency initiatives.
- Warehousing announced 47,878 cuts, up from 984 in September, with the YTD total surging to 90,418 (+378% YoY) amid automation-driven overcapacity adjustments.
- Retail job cuts totaled 2,431 (down slightly MoM), but YTD layoffs rose to 88,664 (+145% YoY) as firms continued to trim costs and adapt to shifting consumer spending.
- Consumer Products layoffs increased to 3,409 (+72% MoM), with 41,033 YTD (+21% YoY), reflecting output adjustments to softer demand.
- Cost-cutting was the top layoff reason in October (50,437 cuts), followed by AI-related restructuring (31,039) and economic conditions (21,104).
- Planned hiring fell to 488,077 YTD (-35% YoY), the lowest January–October total since 2011, including just 372,520 seasonal hires, also a record low for the series.
- Challenger noted that layoffs announced late in the year are unusual, with October marking the highest single-month Q4 total since 2008, underscoring the current wave of corporate belt-tightening.
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U.S. employers announced 54,064 job cuts in September 2025, down -37% MoM and -26% YoY, making it one of only three months this year where cuts were lower than the prior year, though YTD layoffs remain the highest since 2020.
- Q3 job cuts totaled 202,118, the highest for any third quarter since 2020, up +16% YoY but -18% from Q2 2025.
- YTD cuts reached 946,426, up +55% YoY and already +24% above the full-year 2024 total, the fifth-highest January–September total in 36 years.
- The government sector accounted for 299,755 cuts YTD, largely from federal workforce reductions tied to DOGE, though 5,656 rescinded layoffs were tracked in September.
- Technology firms announced 107,878 cuts YTD (-8% YoY), with 17,375 explicitly attributed to artificial intelligence, including 7,000 in September alone.
- Retail layoffs surged to 86,233 YTD (+203% YoY), reflecting sector caution ahead of the holiday hiring season.
- Media job cuts rose to 14,060 YTD (+9% YoY), though news industry layoffs fell sharply (-49% YoY).
- Regionally, the East posted the largest increase (+193% YoY), led by Washington D.C. (+759% YoY), while the South saw +29% YoY growth, the West dipped -2%, and the Midwest was flat.
- Employers announced only 204,939 hiring plans YTD (-58% YoY), the lowest January–September total since 2009, with seasonal hiring especially weak.
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U.S. employers announced 85,979 job cuts in August 2025, up +39% MoM and +13% YoY, marking the highest August total since 2020 and extending the year’s trend of elevated layoffs.
- YTD job cuts reached 892,362, up +66% YoY and already +17% above 2024’s full-year total, the highest January–August tally since 2020.
- Pharma led sector cuts in August with 19,112 layoffs (22,433 YTD, +142% YoY), while finance announced 18,092 (44,986 YTD, +27% YoY).
- Retail cuts totaled 83,656 YTD, a +242% YoY surge, reflecting pressures from tariffs, inflation, and bankruptcies.
- Non-profit layoffs hit 22,151 YTD (+449% YoY), the highest since 2020, while tech cuts (102,239 YTD) fell -3% YoY.
- Regionally, East-based cuts rose +224% YoY, led by Washington D.C. federal reductions (+754%), while the West remained flat and the Midwest and South saw more moderate increases.
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U.S. employers announced 62,075 job cuts in July 2025, up +29% MoM and +140% YoY, bringing the YTD total to 806,383—the highest since 2020 and already surpassing 2024’s full-year total.
- The top drivers of layoffs YTD are Federal budget cuts ("DOGE Impact", 289,679 cuts), economic conditions (171,083), closures (120,226), and AI/tech automation (20,219).
- Retail (80,487, +249% YoY), Tech (89,251, +36% YoY), and Non-Profits (17,826, +413% YoY) led private-sector cuts; Government cuts totaled 292,294 YTD.
- Regional job cuts rose most in the East (+219% YoY), with large increases in Washington D.C., New Jersey, and New York.
- Hiring announcements remain low at 86,132 YTD (+17% YoY), led by Entertainment & Leisure (28,190), while Tech hiring plunged -58% YoY to 5,510.
- Tariff-related cuts impacted ~6,000 jobs YTD; Auto sector cuts totaled 16,883 (-31% YoY) but spiked MoM in July.
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U.S. employers announced 47,999 job cuts in June 2025, down -49% MoM and -2% YoY, bringing the Q2 total to 247,256 up 39% YoY and the highest second quarter since the pandemic.
- So far this year, companies have announced 744,308 job cuts, the highest YTD since 2020 when 1,585,047 were announced. Outside of 2020, it is the highest YTD since 896,675 cuts were announced in the first six months of 2009.
- Government led job cuts YTD with 288,628, while Retail (79,865, +255% YoY) and Technology (76,214, +27% YoY) followed among private sectors.
- Non-profits reported 16,930 cuts (+407% YoY), mainly due to federal budget reductions; Media and News cuts declined -46% and -52% YoY, respectively.
- “DOGE Impact” accounted for 286,679 layoffs YTD, followed by economic conditions (154,126), closures (107,142), and restructuring (64,487).
- The East region saw the largest YoY increase in job cuts (+222%), led by Washington D.C. (289,586); Midwest, South, and West regions showed mixed trends.
- Hiring announcements totaled 82,932 YTD (+19% YoY), but remain historically low, with June’s 3,191 hires marking the weakest monthly figure of the year.
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U.S. employers announced 93,816 job cuts in May 2025, down -12% MoM but up +47% YoY, bringing the YTD total to 696,309 (+80% YoY), just shy of 2024’s full-year total.
- The Services sector led with 22,492 cuts in May, the highest since May 2020; Retail followed with 11,483 cuts and 75,802 YTD (+274% YoY).
- Technology cut 10,598 jobs in May, totaling 74,716 YTD (+35% YoY); Non-profits announced 8,565 May cuts, with a 504% YoY increase YTD.
- “DOGE Impact” remains the top reason for layoffs (284,044 YTD), followed by economic conditions (131,257) and closures (94,439).
- The East region saw the biggest surge in job cuts (+234% YoY), led by federal reductions in D.C.; California posted 93,586 cuts (+42% YoY).
- Hiring plans rose to 79,741 YTD (+57% YoY) but remain below pandemic-era highs, indicating cautious labor market expansion.
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Total US job cuts announced in April were 105,441, down -62% MoM from March’s 275,240 but up 63% YoY from April 2024, marking the highest April total since 2020.
- YTD cuts reached 602,493, up 87% YoY and the highest since 2020.
- The government sector leads with 282,227 YTD cuts, 281,452 of which are DOGE-related, up 680% YoY.
- In April, government job cuts totaled just 2,782, a significant drop from the over 64k cuts reported in February and the 216k reported in March.
- Technology saw 27,021 cuts in April (+79% MoM), bringing its YTD total to 64,118 (+35% YoY).
- Retail announced 7,235 April cuts; its YTD total of 64,319 is up 296% YoY.
- Market/Economic Conditions were cited for 95,348 job cuts, as economic uncertainty, consumer spending, and trade difficulties impact US-companies. Tariffs were cited for 1,413 cuts so far this year, with 1,350 occurring in April.
- Hiring plans increased to 16,191 in April (+65% YoY), with 70,058 planned hires YTD (+50% YoY).
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The US saw 275,240 job cuts in March, up 60% MoM and 205% YoY, which is the third-highest monthly total ever recorded.
- The Government led all sectors in job cuts in March with 216,215. So far this year, the Government has cut 279,445, an increase of 672% from the 36,195 cuts announced in the Q1 2024.
- Over the last two months, DOGE actions have been attributed to 280,253 layoff plans of federal workers and contractors impacting 27 agencies.
- So far this year, employers have announced 497,052, the highest year-to-date and quarterly total since Q1 2009.
- So far this year, companies plan to hire 53,867 workers, a 16% decrease from the 64,163 new hires announced in the first quarter of 2024. It is the lowest Q1 hiring total since 2012 when 52,540 new hiring plans were announced.
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US firms reported 172,017 job cuts in February, the highest total for a February since 2009 and the highest monthly total since July 2020.
- Cuts in February are up 245% MoM and 103% YoY, and in the YTD period, cuts are up 33% from the same period in 2024 and at the highest level since 2009.
- The government sector reported 62,242 job cuts as DOGE looks to reduce the federal workforce substantially. Last year in February, government job cuts were just 151.
- Retail was the second largest sector cutting with 38,956 followed by technology with 14,554 cuts.
- “DOGE Impact” leads job cut reasons this year and was attributed to 63,583 layoffs.
- While cuts surged, so did hiring plans. Challenger notes that companies reported plans of hiring 34,580 workers in February, the highest February total since 2022.
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US job cuts increased 28% MoM to 49,795 in January but were down -40% YoY. Notably, this was the lowest number of January cuts since 2022 (which was the lowest number of January cuts on record).
- Tech job cuts led with 7,488, up 128% MoM, and retail job cuts followed with 6,419 job cuts, a 96% increase.
- Why were firms cutting? Closures drove the highest number of layoffs last month with 16,123. Restructuring efforts followed closely, accounting for 12,618 job losses. Market and economic conditions were cited for 8,159 layoffs.
- US employers announced plans to hire 6,089 workers in January, a 24% decrease from the 7,999 hiring plans announced in December. It is up 13% from the 5,376 plans announced in January last year.
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US firms announced 38,792 job cuts in December, down -33% MoM but up 11% YoY. In Q4 2024, total job cuts were 152,116 or a decline of -13% QoQ but an increase of 30% YoY. Finally, for the full year of 2024, cuts totaled 762,358, a 5.5% increase over 2023 and the highest annual total since 2020, and before that, since 2009.

The industry with the most cuts in 2024 was Technology for the second straight year, but the sector did see a decline of -20.3% YoY. Besides the government which saw cuts from a reduction in armed services roles, the Automotive sector saw the largest percentage increase in cuts, up 43.2% from 2023.

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