Layoff announcements top 1.1 million this year, the most since 2020 pandemic, Challenger says

U.S. Employers Announce Job Cuts Surpassing 1 Million for the Year

In November, U.S. employers announced further job cuts, pushing the total number of layoffs for the year past 1 million. Corporate restructuring, advancements in artificial intelligence, and tariffs have all played a role in reducing job rolls, according to a report by consulting firm Challenger, Gray & Christmas.

The firm reported that in November alone, there were 71,321 layoff plans, a decrease from the high numbers seen in October but still enough to bring the total number of layoffs for 2025 to 1.17 million. This represents a 54% increase compared to the same period last year and marks the highest level of job cuts since the onset of the Covid-19 pandemic in 2020.

One of the major contributors to the November layoffs was Verizon, which announced plans to cut more than 13,000 jobs. The tech sector also saw significant reductions, with 12,377 job cuts related to advancements in artificial intelligence. In fact, AI has been responsible for 54,694 job losses this year.

Tariffs were cited as the reason behind over 2,000 job cuts in November and nearly 8,000 for the year. The primary drivers for layoffs in November were restructuring, closures, and challenging market conditions.

Andy Challenger, workplace expert and chief revenue officer at Challenger, Gray & Christmas, noted that while layoffs decreased in November, the total number of job cuts exceeded 70,000 only twice since 2008. He also highlighted a shift in the timing of layoff announcements, with companies moving away from end-of-year layoffs following the financial crisis in 2008.

Despite the concerning trend of increasing job cuts, there are conflicting reports about the state of the U.S. labor market. ADP reported a significant decline in private sector employment in November, while the Labor Department announced a sharp drop in weekly jobless claims to the lowest level in over three years.

Overall, hiring prospects have been limited this year, with employers announcing 35% fewer planned hires compared to the same period in 2024. While there are signs of weakness in the labor market, official data has yet to reflect a significant surge in layoffs.

As the year comes to a close, the impact of ongoing job cuts and economic challenges on the U.S. labor market remains a key concern for policymakers and industry stakeholders.