U.S. Layoffs Surge to 22-Year High: Key Takeaways from the October 2025 Challenger, Gray & Christmas Report

The latest report from executive outplacement firm Challenger, Gray & Christmas, Inc. (CGC) paints a stark picture of the U.S. job market. Employers announced more than 153,000 job cuts in October 2025, marking the highest monthly total for October since 2003 and signaling a sharp acceleration in workforce reductions across major industries. A Steep Climb in Layoffs

A Steep Climb in Layoffs

According to CGC’s data, employers announced 153,074 job cuts in October—a 183% increase from September and up 175% from the same month last year.

So far in 2025, U.S. employers have announced over 1.09 million job cuts, representing a 65% year-over-year increase and already exceeding the total number of layoffs for all of 2024 by more than 40 percent.

This surge reflects a combination of slowing demand, cost pressures, and restructuring efforts driven by automation and artificial intelligence (AI).

“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.” — Andy Challenger, Chief Revenue Officer, Challenger, Gray & Christmas

Which Sectors Are Being Hit the Hardest?

Several industries are bearing the brunt of October’s job cuts:

• Technology: 33,281 job cuts in October alone. Year-to-date, tech companies have announced 141,159 layoffs, surpassing 2024’s total of 120,470.
• Warehousing: 47,878 layoffs in October, with a year-to-date total of 90,418—a staggering 378% increase compared to last year.
• Retail: While October’s total (2,431) was relatively modest, the sector’s cumulative 88,664 cuts in 2025 mark a 145% increase year-over-year.

The report highlights cost-cutting and automation as the leading reasons behind these reductions. Nearly 31,000 job cuts in October were attributed to AI and automation alone.

Hiring Activity Slows Dramatically

It’s not just layoffs that are raising alarms. Hiring announcements have also fallen sharply. Through October, U.S. employers reported 488,077 planned hires, down 35% from 750,333 during the same period last year.

That figure marks the lowest year-to-date hiring total since 2011, underscoring how companies are freezing or slowing expansion amid economic uncertainty.

Implications for HR and People Operations

For HR teams, this new wave of cuts presents both operational and strategic challenges.

1. Prepare for Workforce Shifts: With AI and automation driving change, organizations should identify roles most susceptible to redundancy and develop reskilling or redeployment programs.
2. Reassess Communication Plans: How layoffs are handled has long-term implications for employer brand. Clear, compassionate communication—both internal and external—can mitigate reputational damage.
3. Prioritize Transition Support: Outplacement, job search, and emotional support programs should be in place before layoffs occur.
4. Coordinate Scenario Planning: Partner closely with finance and operations to model various demand and cost scenarios. Workforce agility—not just reduction—should be the goal.

A Difficult End to the Year

Announcing large-scale layoffs in the final quarter of the year can bring added reputational risks. As CGC’s report notes, year-end cuts tend to draw public scrutiny—especially as they coincide with the holiday season.

For HR leaders, this moment calls for balance: protecting the organization’s financial health while preserving employee trust and morale.

The October report serves as a warning that workforce transformation is no longer theoretical—it’s happening at scale. Companies that treat this as an opportunity to redesign work, invest in learning, and plan transparently will be better positioned when the market stabilizes.