In October 2025, U.S. employers announced significant layoffs, reaching the highest level for the month in 22 years. The global outplacement firm Challenger, Gray & Christmas reported that 153,074 job cuts were made, marking a 175% increase from 55,597 job cuts in October 2024 and a 183% rise from the 54,064 cuts reported in September 2025.
According to Andy Challenger, a workplace expert at the firm, the current pace of layoffs surpasses the historical average for October. He attributes the trend to several factors, including the adoption of artificial intelligence (AI), declining consumer and corporate spending, and rising operational costs. Additionally, he noted that those affected by recent layoffs are experiencing greater difficulty in securing new employment, potentially contributing to a looser labor market.
Year-to-date, a total of 1,099,500 job cuts have been announced, reflecting a 65% increase compared to the same period in 2024 and surpassing the total cuts recorded for the entirety of that year. This year’s figures are the highest since 2020, when over 2.3 million cuts were reported through October.
The warehousing sector led the layoffs in October, with 47,878 job cuts, a sharp increase from just 984 in September. The technology sector also experienced a notable rise, announcing 33,281 job cuts in October, up from 5,639 the previous month. In contrast, the retail sector announced fewer cuts than in September but remains significantly affected overall, with 88,664 job cuts announced year-to-date—up 145% from the previous year.
These recent layoffs are indicative of broader shifts in the labor market as companies adapt to changing economic conditions and technological advancements.