Job layoffs hit 22-year high, and will expedite this holiday season
In this DML Report…
American companies announced 153,074 job cuts in October, marking the highest monthly total in over two decades since 2003, with a 175% increase from the previous year and 183% from September. Year-to-date through October 2025, employers have cut more than 1.09 million positions, up 65% from 2024 and the highest since 2020. Tech firms led with over 33,000 reductions in October, while warehousing shed nearly 48,000 roles this year due to automation replacing pandemic-era hires. Retailers, service firms like cleaning and logistics, and consumer goods companies also faced significant cuts from store closures and efficiency measures. AI has contributed to over 48,000 job losses in 2025, including 31,000 in October alone. Hiring announcements remain weak at under 490,000 for the year, down 35% from last year and the lowest since 2011.
Cost-cutting emerged as the primary driver in October, accounting for over 50,000 losses as firms tighten budgets amid economic pressures. AI followed with 31,000 cuts, economic factors like weaker demand caused 21,000, store and plant closures led to 16,700, and restructuring to nearly 7,600. Overall for 2025, federal job reductions and private-sector fallout under "DOGE Impact" total nearly 300,000. Specific actions include Amazon's recent elimination of 14,000 white-collar roles as CEO Andy Jassy prioritizes AI and automation; Target's cut of 1,800 corporate positions on October 23 due to slumping sales; Walmart's May reduction of 1,500 tech and e-commerce jobs; Procter & Gamble's ongoing elimination of 7,000 positions; Microsoft's expected thousands of layoffs next month for AI shifts; Intel's 25,000 cuts this year; and UPS's 34,000 reductions in 2025, exceeding initial projections.
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The pre-holiday timing breaks a long-standing corporate taboo against Q4 layoffs, driven by social media scrutiny and investor demands for efficiency, according to Andy Challenger of Challenger, Gray & Christmas. He noted that industries are scaling back due to new technology, rising costs, softer spending, and post-pandemic corrections, making job searches harder for laid-off workers and potentially loosening the labor market. While potential rate cuts and a strong November could boost hiring, a robust seasonal environment is not anticipated. Midwest CEO exits reached 351 in 2025, up 6% from last year, led by Illinois, Indiana, and Iowa.