Layoff announcements in the United States have surged past 1.17 million in 2025, marking the highest level since the early months of the COVID-19 pandemic, according to a new report from Challenger, Gray & Christmas released Thursday.
Corporate restructuring, the rise of artificial intelligence, and tariff pressures have continued to push companies toward aggressive cost-cutting measures.
Layoffs Rise Sharply in 2025, Up 54% From Last Year
In November alone, U.S. employers announced 71,321 job cuts — fewer than October’s massive 153,000 layoffs but still high enough to keep the overall total elevated.
Key highlights:
- 2025 year-to-date layoffs: 1.17 million
- Increase from 2024: 54%
- Highest since: 2020 pandemic-era job cuts
The only other recent years with November layoffs above 70,000 were 2008 and 2022, showing how historically rare these levels are.
Verizon and Tech Sector Drive Layoff Spike
Verizon’s announcement of over 13,000 job cuts was a major contributor to November’s total.
The tech industry, heavily influenced by the rapid adoption of artificial intelligence, reported 12,377 layoffs in November alone.
This brings the sector’s 2025 job cuts to 17% higher than last year.
AI-related layoffs are a growing trend:
- AI cited directly in: 54,694 layoffs this year
- Companies say automation and AI tools are replacing or reorganizing certain roles
Tariffs, Restructuring Among Top Layoff Factors
Companies reported several reasons for job cuts:
Top causes in November:
- Restructuring (most common)
- Business closures
- Weaker market or economic conditions
- Tariffs, responsible for:
- 2,000+ cuts in November
- Nearly 8,000 cuts year-to-date
Challenger noted that although layoffs fell from October, the overall trend suggests employers are preparing for a slower economic climate.
End-of-Year Layoffs Used to Be Common—Not Anymore
Andy Challenger, Chief Revenue Officer at Challenger, Gray & Christmas, explained that companies have shifted away from announcing layoffs during the holiday season.
“It used to be common to schedule layoff announcements toward the end of the year, aligned with fiscal year deadlines,” Challenger said. “After the Great Recession, this became unpopular, and companies now avoid layoffs during the holidays whenever possible.”
This change makes the high November numbers even more concerning.
Hiring Also Slows Dramatically in 2025
Layoffs are not the only problem — hiring plans are down significantly.
- 497,151 planned hires in 2025
- 35% fewer than the same period in 2024
This indicates a more cautious approach from employers, reflecting broader economic uncertainty.
Labor Department Data Shows Mixed Signals
Despite rising layoff announcements, official labor market data hasn’t yet shown a spike in unemployment.
The U.S. Labor Department reported:
- Weekly jobless claims: 191,000
- Lowest level in more than three years
- Down 27,000 from the previous week
The drop was partly driven by large declines in California and Texas, likely influenced by the Thanksgiving holiday.
This creates a confusing picture: employers are announcing major cuts, but unemployment claims haven’t reacted accordingly — at least not yet.
Overall Outlook
With AI reshaping industries, tariffs impacting supply chains, and restructuring widespread across sectors, analysts warn that the U.S. labor market may face further pressure in early 2026.
While some indicators remain strong, the steady climb in job-cut announcements suggests employers are preparing for a more challenging economic environment.