U.S. employers have announced over 1.1 million job cuts through November 2025, marking the highest annual total since 2020, when the pandemic triggered more than 2.3 million layoffs by that point in the year.
This represents a 44% increase from the 761,000 cuts in all of 2024. The figure is the fifth-worst since 1993, following only the dot-com bust years (2001–2002), the 2008 financial crisis, and the 2020 pandemic shock. November alone saw 71,321 announced cuts, up 24% from November 2024 but down from October’s peak of 153,000.
These numbers come primarily from Challenger, Gray & Christmas, a Chicago-based outplacement firm that tracks planned layoffs. While official Bureau of Labor Statistics (BLS) data shows layoffs remaining relatively low around 1.6% of the workforce in August 2025, Challenger’s announcements capture forward-looking cuts that often materialize later.
Private payrolls also dipped by 32,000 in November per ADP data—the largest monthly drop in over 2.5 years—signaling strain, especially among small businesses. Layoffs in 2025 stem from a mix of post-pandemic corrections, economic pressures, and policy shifts.
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This has been the hardest-hit area, with over 307,000 cuts announced through October—more than eight times the 2024 figure. The “DOGE Impact” (Department of Government Efficiency, led by Elon Musk under the Trump administration) is the top cited reason, involving widespread federal workforce reductions.
About 300,000 civil service jobs have been targeted overall, including 4,100 reductions in force (RIFs) during a brief government shutdown earlier this year. Agencies like the State Department finalized mass layoffs in December, unaffected by shutdown-ending deals.
Critics, including lawsuits, argue these cuts prioritize political motives over efficiency, disproportionately affecting women, minorities, and Black employees in DEI-focused roles.
Tech has seen 141,000–183,000 cuts across 626 companies, down from 2023 peaks but still elevated due to AI adoption cited in ~55,000 cases and post-pandemic over-hiring reversals.
Major players include, Amazon 14,000 corporate roles. Microsoft and Meta: Ongoing rounds targeting “low-performers.” Intel: 15% workforce reduction ~16,000 jobs in early 2025. Verizon: 13,000+ management positions.
Other Sectors like Warehousing and Retail with over 90,000 cuts, driven by e-commerce slowdowns and inventory gluts. Telecom: 15,000+ in November alone. Energy and Manufacturing: Oil shale layoffs up 60% amid low prices; Boeing, ConocoPhillips, and UPS 48,000 jobs cited efficiency.
Softer consumer spending, rising costs, tariffs blamed for manufacturing contraction over 9 months, and hiring freezes. Planned hires have plunged 35% year-over-year to ~500,000—the lowest since 2010.
Despite the layoffs, unemployment claims hit a low of 211,000 in late December 2024 pre-2025 surge, and overall job growth has held steady in BLS reports.
However, hiring is stuttering, and experts warn of a “squeezed” market: Q3 2025 saw 202,000 cuts, the highest since 2020. On X, discussions highlight cross-border effects, like Canadian mill closures tied to U.S. tariffs and steel loans funding automation-driven layoffs.
Layoffs erode household incomes, curbing spending on non-essentials like retail and travel. With voluntary turnover dropping and hiring freezes widespread, consumer confidence is eroding—evident in a 36.8% surplus of home sellers over buyers in October, the widest gap since 2013.
Growth forecasts have dipped from 2.8% in 2024 to around 2% this year, per BLS trends, as sectors like manufacturing contract under tariff pressures up 9 months straight. If December’s holiday hiring falters, this could shave 0.5–1% off GDP in early 2026.
Ironically, the surge is “good news” for Wall Street, as it pressures the Fed to accelerate cuts—now eyed for December 2025 and beyond—to avert a downturn. Unemployment’s stability masks fading job openings, but a moderate layoff uptick could spike it faster than usual, justifying cheaper borrowing.
Stocks have rallied on this like the S&P up 5% post-October data, but it risks inflating asset bubbles while real wages stagnate for low earners—the gap between rich and poor households is widening, reversing a decade of progress.
Government cuts 307,000+ via DOGE and tech/AI-driven losses 141,000+ are redirecting jobs to resilient areas like healthcare gaining 76,000/month and renewables. However, tariffs could hike costs in agriculture and construction, sparking labor shortages and food inflation—AI/automation may offset some, but not immediately.
Non-profits face 413% more cuts from federal funding slashes, straining social services. Public sentiment echoes frustration, with users calling out policy impacts on families and small businesses.
This isn’t a full recession signal yet—holiday spending could spur December hires—but it’s a stark reminder of 2020’s volatility. If you’re job hunting, sectors like AI roles like research scientists earning $200K+ remain in demand amid the cuts.