U.S. employers dramatically increased layoffs in October, recording the highest monthly total for the month in 22 years, as companies focused on cost reduction and the rising adoption of artificial intelligence (AI).
A report from the global outplacement firm Challenger, Gray & Christmas found that employers cut 153,074 jobs in October. This figure represents a massive 175% jump from the 55,597 cuts announced in October 2024 and an 183% increase over the 54,064 cuts recorded just a month earlier in September.
“October’s pace of job cutting was much higher than average for the month. Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes,” said Andy Challenger, workplace expert and chief revenue officer at Challenger, Gray & Christmas.
Challenger added that those recently laid off are “finding it harder to secure new roles, which could further loosen the labor market.”
Historical Context and Year-to-Date Totals
Through October, U.S. employers have announced 1,099,500 job cuts. This is a 65% increase from the first 10 months of 2024 and 44% higher than the 761,358 cuts announced in all of 2024. Year-to-date job cuts in 2025 are at the highest level since 2020, when 2,304,755 cuts were announced through October.
The number of job cuts announced last month was the highest monthly total for October since 2003, when 171,874 cuts were recorded. Challenger noted the historical parallel, stating, “This is the highest total for October in over 20 years, and the highest level for a single month in the fourth quarter since 2008. Like in 2003, disruptive technology is changing the landscape.”
Challenger also pointed out that the volume of Q4 layoffs is unusual. “Over the last decade, companies have shied away from announcing layoffs in the fourth quarter, so it’s surprising to see so many in October,” he said. “With the onset of social media, the ability for workers to share their negative experiences with their employers, the trend of announcing layoffs before the holidays fell away, a practice that seemed particularly cruel.”
Industry Breakdown
The job cuts were concentrated in specific sectors:
- Warehousing: This industry led all sectors in October with 47,878 cuts—a sharp rise from just 984 in September. Year-to-date, the sector has cut 90,418 jobs, marking a 378% increase compared to the same period last year.
- Technology: Tech firms announced 33,281 cuts in October, a significant jump from 5,639 in September. So far this year, the sector has announced 141,159 job cuts, an increase of 17% year-over-year.
- Retail: Although retailers announced slightly fewer cuts in October (2,431) than in the prior month (2,577), the retail sector remains severely impacted this year. Retailers have announced 88,664 job cuts year-to-date, a 145% increase over the first 10 months of 2024.
