U.S. employers announced 153,074 job cuts in October 2025, the highest total for the month since 2003. This is a 175% increase from the same period last year, according to a report released Thursday by outplacement firm Challenger, Gray & Christmas.

The surge is a 183% spike from September’s total of 54,064 cuts, making October the worst single month for layoffs in the fourth quarter since 2008.

The October figures push year-to-date job cuts to 1,099,500—a 65% increase from the 664,839 announced during the first ten months of 2024 and already 44% higher than the entire year of 2024. This is the highest level of job reductions since 2020, when the pandemic triggered 2,304,755 cuts through October.

“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. Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.

The last time October saw comparable job losses was in 2003, when 171,874 cuts were recorded amid major disruptions in the telecommunications sector as cell phones gained widespread adoption. Challenger drew parallels between that period and today’s AI-driven transformation.

Not only did individual companies announce large layoff totals in October, but a higher number of companies announced job cut plans overall. Challenger tracked nearly 450 individual job cut announcements in October, compared to just under 400 in September and roughly 350 in March.

The warehousing sector experienced the most severe cuts in October, announcing 47,878 job reductions—a sharp increase from just 984 in September. Year-to-date, warehousing has eliminated 90,418 positions, is a 378% increase from the same period in 2024. 

UPS, a major contributor to the warehousing numbers, has cut approximately 48,000 jobs this year, including 34,000 positions through operational roles such as drivers and warehouse staff, and 14,000 management positions. The delivery giant cited its U.S. network overhaul and a planned 50% reduction in packages delivered for Amazon by June 2026 as driving factors.​

The technology sector announced 33,281 job cuts in October, up sharply from 5,639 in September. For the year, technology firms have announced 141,159 job cuts, up 17% from the 120,470 announced through the same period in 2024. Major tech companies contributing to these figures include Amazon, which cut approximately 14,000 corporate roles across business units including cloud, operations, and HR, and Meta, which eliminated roughly 600 positions in its AI and risk divisions.

Retail continues to face significant pressure, with 88,664 job cuts announced year-to-date—a 145% increase from the 36,136 cuts during the same period last year. Target announced plans to eliminate 1,800 corporate positions in October, which is about 8% of its global corporate workforce, marking the retailer’s first major layoffs in a decade. The consumer products sector has announced 41,033 job cuts this year, up 21% from 2024.

Non-profit organizations have been heavily impacted by government funding cuts, announcing 27,651 planned job reductions in 2025—a 419% increase from the 5,329 announced during the same period in 2024. The media industry has announced 16,680 cuts so far this year, up 26% from last year, with the news subset recording 2,075 job cuts.

Cost-cutting emerged as the top reason employers cited for job reductions in October, responsible for 50,437 announced layoffs. Artificial intelligence ranked as the second-most cited factor, leading to 31,039 job cuts in October as companies continue to restructure and automate operations. AI has been cited for 48,414 job cuts throughout the year.​

“DOGE Impact”—referring to the Department of Government Efficiency’s efforts to reduce federal workforce—remains the leading reason for job cut announcements in 2025, cited in 293,753 planned layoffs. This includes direct reductions to the federal workforce and its contractors across 27 agencies. An additional 20,976 cuts have been attributed to “DOGE Downstream Impact,” reflecting the loss of federal funding to private and non-profit entities.​

Market and economic conditions accounted for 21,104 cuts in October, bringing the year-to-date total for this reason to 229,331. Closings of stores, units, and plants resulted in 16,739 cuts for the month and 161,391 for the year, while restructuring was cited in 7,588 October announcements for a total of 108,038 so far in 2025.

Through October, U.S. employers have announced only 488,077 planned hires, down 35% from the 750,333 announced at this point in 2024. On average, employers have announced 48,808 new hires per month—the lowest monthly average since 2011.

Seasonal hiring has been particularly weak, with only 372,520 seasonal hiring plans announced through October—the lowest number since Challenger began tracking them in 2012. The National Retail Federation projected holiday hiring by retailers would range from 265,000 to 365,000 positions this year, marking the lowest count of seasonal employees in at least 15 years and a significant decline from the 442,000 seasonal staff hired last year.

Between 2003 and 2013, the fourth quarter averaged 74,733 job cuts per month, but from 2014 to 2024, that monthly average fell to 42,927 as companies became reluctant to announce layoffs before the holidays. The October average for job cuts from 2014 to 2024 was just 47,086.​

“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,” Challenger noted. “With the onset of social media, and 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.”​

He added that at a time when job creation is at its lowest point in years, “the optics of announcing layoffs in the fourth quarter are particularly unfavorable”.​

The Challenger report has taken on increased significance as the government shutdown—now the longest in U.S. history—has prevented the release of official labor market data from federal agencies.