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By Brian Daitzman
Layoffs in the United States have reached their highest level in more than a decade, signaling a turn in the labor market after years of remarkable resilience. New data from Challenger, Gray & Christmas, which tracks corporate workforce reductions, show that U.S. employers announced 1.1 million job cuts through October — the most since the pandemic, and comparable to totals recorded during 2008 and 2009. The surge includes some of the largest corporate layoffs in years, with tens of thousands of positions eliminated at logistics, retail, and technology firms.
In October alone, companies announced roughly 153,000 job cuts, an increase of 183 percent from September, making it the worst October for layoffs since 2003, according to the firm’s monthly report.
The last time layoffs were this elevated for the month was amid the early-2000s downturn, when the technology sector collapsed under the weight of over-expansion and shifting demand. This year, a different kind of technological upheaval is under way: businesses are blaming automation and artificial intelligence for productivity gains that allow them to do more with fewer workers.
“We’re entering new territory with these layoffs,” said John A. Challenger, chief executive of Challenger, Gray & Christmas. He added that the scale of cuts by companies such as UPS and Amazon reflects a broader shift in corporate strategy. (Washington Post, November 6, 2025 )
The breadth of job losses has widened beyond technology. Retailers, warehouse operators, and service companies are trimming payrolls to offset higher borrowing costs and slower consumer spending, while facing uncertainty over tariffs and federal funding. Employers told Challenger’s researchers that cost-cutting and artificial intelligence were the top reasons for October’s reductions (CGC report, Oct 2025).
The downturn arrives as the federal government remains partially shut down for a second month, delaying official employment reports and leaving policymakers reliant on private data. As of August — the most recent period with government figures — the unemployment rate stood at 4.3 percent, historically low but edging higher from the start of the year. Economists warn that the rate could climb once October and November data are released.
Elsewhere, the Federal Reserve has begun adjusting course. At its October 29 meeting, the Fed cut its benchmark interest rate by a quarter point, citing “downside risks to employment.”
“You see a significant number of companies either announcing that they are not going to be doing much hiring, or actually doing layoffs,” Chair Jerome H. Powell said after the decision (Federal Reserve press conference, October 29, 2025). The move marked a shift in emphasis from fighting inflation toward preserving job stability.
Private payroll data present a mixed picture. The ADP National Employment Report found that private employers added 42,000 jobs in October, a modest rebound following two months of contraction. But within those numbers, white-collar fields such as information and professional services shed tens of thousands of positions, consistent with Challenger’s findings of weakness in higher-wage sectors. The figures suggest a labor market splitting in two — continued hiring for essential and lower-wage work, offset by contraction in corporate and technical roles.
The technology industry, once a driver of U.S. expansion, has cut about 141,000 jobs this year, up 17 percent from the same period in 2024. Executives cite both declining demand and restructuring tied to artificial-intelligence systems that automate coding, logistics, and administrative tasks. In Houston, software developer Scott Boggs, 52, who lost his job in September, told the Washington Post that his first interview was with an A.I. bot lasting about twelve minutes and that he has found the new job market “stressful.” (Washington Post, November 6, 2025.)
Despite the wave of cuts, the broader economy has not yet tipped into recession. Consumer spending remains positive, and corporate earnings are still above crisis thresholds. But the momentum of layoffs suggests a collective adjustment as firms brace for slower growth in 2026. Some analysts view the current period as a “corrective recession” — a retrenchment in hiring and wages, rather than a full contraction.
The last time the United States saw comparable layoff totals was during the Great Recession, when 1.22 million jobs were cut in 2008, itself the worst year since 2003 (Hartford Business archive, Jan 2009). The echo of those numbers, now replaying under the influence of A.I. and cost pressure, is drawing uneasy comparisons. Whether 2025 proves a temporary correction or the beginning of a longer downturn may depend on how quickly companies resume hiring once inflation and interest-rate concerns subside.
References
The Washington Post — “Layoffs rise to recession-like levels through October, new report says.”
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Challenger, Gray & Christmas — Job Cuts Report Hub (official source data)
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Reuters — “U.S. Layoffs Surge in October, Highest in 22 Years, Challenger Data Show.”
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Federal Reserve — FOMC Statement (Oct 29, 2025) – Rate Cut and Labor Market Context
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ADP National Employment Report – Private Payroll Data for October 2025
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