Employers have cut 1.1 million jobs this year. Here’s what’s behind the wave of layoffs.

The job market has taken a hit this year, with employers cutting more than 1.1 million jobs through November. This marks the highest number of layoffs since the pandemic in 2020, when 2.2 million workers were let go. According to a recent report from outplacement firm Challenger, Gray & Christmas, job cuts have increased by 54% compared to the same period last year. This is only the sixth time since 1993 that job cuts have surpassed the 1.1 million mark in the first 11 months of the year.

One of the key drivers behind the surge in job cuts in 2025 is the technology sector. Tech companies have laid off 153,536 workers so far this year, a 17% increase from the previous year. Amazon, for example, announced a significant workforce reduction of 14,000 jobs as it implements AI tools to enhance efficiency.

In addition to the technology sector, the retail industry has also been hit hard, shedding 91,954 jobs by November. Consumers facing higher prices and economic uncertainty have scaled back on discretionary spending, leading to a challenging year for retailers. The holiday season, typically a time for increased hiring, is expected to be the weakest in 15 years for seasonal work.

Other sectors with notable job cuts include services (69,089), telecommunications (38,035), food (34,165), nonprofit (28,696), and media and news (17,163).

The primary reasons for layoffs in 2025 include the Trump administration’s Department of Government Efficiency (DOGE), which resulted in nearly 300,000 job losses. Market and economic conditions, company closures, restructuring, advancements in artificial intelligence, and tariffs imposed by the Trump administration on trade partners have also contributed to job cuts.

Small businesses, in particular, have been impacted by tariffs, with private-sector employers cutting 32,000 jobs in November. These smaller firms, operating on thin margins, have struggled with rising costs and policy uncertainty.

Overall, the job market in 2025 has been challenging for both workers and employers. As companies navigate economic uncertainties and evolving technologies, it’s essential for both employees and businesses to adapt to the changing landscape of the job market.