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U.S. employers increased layoffs in October to the highest level for the month in 22 years as companies sought to cut costs and artificial intelligence (AI).
A report from global outplacement firm Challenger, Gray & Christmas shows that employers have cut 153,074 jobs functionThat is an increase of 175% in October compared to the 55,597 cuts announced in October 2024. It also marks a 183% increase from the 54,064 job losses announced in September.
“The pace of job losses in October was much higher than average for the month. Some industries are correcting after the hiring boom caused by the pandemic, but this is as AI adoption, slowing consumer and business spending and rising costs lead to belt tightening and workforce freezes,” said Andy Challenger, workplace expert and Chief Revenue Officer at Challenger, Gray & Christmas.
“Those being laid off now may find it harder to secure new positions, which could further soften the labor market,” Challenger added.
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Layoffs in October reached their highest level since 2003, according to a report from outplacement firm Challenger, Gray & Christmas. (KM Cannon/Las Vegas Review-Journal via Getty Images)
U.S. employers have announced 1,099,500 job cuts through October, a 65% increase from the first ten months of 2024 and 44% more than the 761,358 job cuts announced in all of 2024.
Job losses so far in 2025 are at the highest level since 2020, when 2,304,755 job losses were announced through October.
The number of job cuts announced last month was highest monthly total for October since 2003, when 171,874 cuts were recorded. At the time, significant job losses were announced in retail due to takeovers and in the telecommunications sector as mobile phones became more widely used.
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The retail sector has been particularly hard hit by layoffs in 2025 so far. (Stephanie Keith/Bloomberg via Getty Images/Getty Images)
“This is the highest total for October in more than two decades, and the highest level for a single month in the fourth quarter since 2008. As in 2003, disruptive technology is changing the landscape,” Challenger said.
“Over the past decade, companies have shied away from announcing layoffs in the fourth quarter, so it’s surprising to see so many in October,” Challenger added. “With the advent of social media, the ability for employees to share their negative experiences with their employers, and the trend of announcing layoffs before the holidays, a practice that seemed particularly cruel disappeared.”
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The warehousing sector led all sectors in layoffs last month. (Lucas Jackson/Reuters)
The warehousing industry In October, all industries led job losses, with 47,878 cuts announced, compared to 984 in September. The sector has shed 90,418 jobs to date, which is an increase of 378% compared to the same period last year.
The technology sector announced 33,281 cuts in October – a significant increase from 5,639 in September. Over the course of 2025, tech companies have announced 141,159 job losses, an increase of 17% from the same period in 2024.
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Retailers announced 2,431 job cuts in October, down from 2,577 a month earlier. However, the retail remains one of the hardest hit industries this year, with retailers announcing 88,664 job losses to date, a 145% increase on cuts announced in the first ten months of last year.
