Athira Sethu
Kochi, 7 Nov 2025
US companies announced the most layoffs in more than 20 years last month, according to Challenger, Gray & Christmas. In all, 153,074 jobs were cut last month, nearly three times as many as in October of the previous year. The increase is primarily because of changes related to the technology and warehousing industries. It’s the most job cuts for any October since 2003, when the proliferation of cellphones had a similar effect, according to Andy Challenger, the company’s chief revenue officer.
Challenger added that some sectors were correcting after over-hiring during the pandemic. Simultaneously, other factors such as increased artificial intelligence, weaker consumer and corporate spending, and higher costs continue to push companies to tighten belts by freezing hiring.
Laid-off workers are finding it increasingly difficult to get new jobs, which could further slow down the labor market.
So far this year, job cuts have surpassed 1 million, the most since the pandemic. In the same period, companies announced the fewest new hires since 2011. Seasonal hiring for this year is also the lowest since Challenger started tracking the data in 2012.
Challenger said that, if the interest rates are cut and the economy is good in November, companies may try to hire more workers later in the year, but as it stands now, there won’t be a strong 2025 hiring season.
Recently, major companies have announced big layoffs: 1,800 jobs will be shed at Target, 14,000 corporate workers are leaving Amazon, and Paramount Skydance is cutting 1,000 jobs. Other firms including Starbucks, Delta, CarMax, Rivian and Molson Coors have also shed jobs, affecting about 9% of their salaried workforce.
These increasing job cuts have raised concerns over the current state of the labor market, as newly unemployed individuals have fewer opportunities to find work.
