US Job Cuts Soar to 22-Year High in October, Led by Tech and Retail Sectors
US employers announced over 153,000 job cuts in October, marking the highest monthly total in 22 years, driven significantly by layoffs in technology, retail, and warehousing sectors.
Overview
- US employers reported over 153,000 job cuts in October, marking the highest number for that specific month in 22 years, significantly exceeding the typical pace of workforce reductions.
- This surge in October contributed to a cumulative total of over 1.1 million job cuts announced across various industries throughout the United States during the current year.
- The significant increase in layoffs is particularly concentrated in the technology, retail, and warehousing sectors, with technology companies leading the overall job reduction trend.
- The high volume of workforce reductions reflects ongoing economic challenges and business adjustments, indicating a period of significant instability in the labor market.
- The Challenger's report provided crucial data on these job cuts, especially as the Department of Labor's official employment report was delayed due to a government shutdown.
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Analysis
Center-leaning sources frame this story by emphasizing a significant downturn in the labor market, primarily through the prominent use of data from Challenger, Gray & Christmas. They highlight the "worst October layoffs in 22 years" and "slashed" jobs, creating a narrative of a "softening labor market." While including a counter-perspective, its placement and framing subtly reinforce the initial negative outlook.
"Employers slashed more than 150,000 jobs in October, the largest wave of layoffs in more than 20 years."
USA TODAY"U.S.-based companies announced more than 153,000 job cuts in October, the research firm Challenger, Gray & Christmas reported Thursday."
NBC News"Layoffs across the U.S. soared last month to more than 153,000, marking the worst October for job reductions in 22 years, according to outplacement firm Challenger, Gray & Christmas."
CBS NewsArticles (7)
FAQ
The surge in job cuts is driven primarily by the adoption of artificial intelligence (AI), cost-cutting measures, softening consumer and corporate spending, and rising operational costs, especially impacting technology, retail, and warehousing sectors.
October 2025 saw over 153,000 job cuts, marking the highest number for that month in 22 years and representing a 175% increase from October 2024. This is the worst October for layoffs since 2003.
AI adoption is disrupting the workforce by accelerating layoffs, particularly in tech-related industries, as companies restructure and reduce costs. This disruption is referred to as the 'DOGE impact,' echoing similar technology-driven labor market shifts seen in 2003 with cellphones.
Hiring has slowed to the lowest point in 14 years, with seasonal hiring plans at their lowest since 2012. Employers announced the fewest hiring plans since 2011, reflecting a weak job market despite high layoffs.
The Department of Labor's official employment report for September and October has been delayed due to the longest government shutdown in U.S. history, causing reliance on private sources such as Challenger, Gray & Christmas and ADP for labor market updates.
History
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