U.S. layoffs have surged to their highest level in four years, according to a new report from Challenger, Gray & Christmas. Employers announced 1.1 million job cuts in 2025, a figure not seen since the early months of the COVID-19 pandemic. Both CBS News and CNBC report that companies across tech, retail, finance, and media are tightening budgets and restructuring ahead of a slower economic outlook.
Challenger’s data shows that job cuts this year are 130% higher than the same period in 2024. The firm described the spike as a clear sign that companies are “pulling back” and preparing for 2026 with caution. The tech sector alone announced nearly 170,000 cuts, while retail companies shed more than 150,000 positions, marking some of the highest totals in those industries since the pandemic.
Andy Challenger, senior vice president at the firm, told CNBC that companies are still reacting to rising costs, cautious consumer spending, and investor pressure to streamline. “Employers are entering 2026 with leaner teams,” he said, adding that many businesses are becoming more selective with hiring and more aggressive with restructuring.
BREAKING: US employers made 71,321 new layoff announcements in November, officially bringing the 2025 total up to 1.17 million layoffs
This now marks the FIRST year with 1.1+ million job cuts since the pandemic lockdowns in 2020.
American consumers are in trouble#TrumpRecession pic.twitter.com/hYZnDoTQpJ
— Thomas J. Hartfield (@hartfield) December 4, 2025
Like in 2003, a disruptive technology is changing the landscape,” explained Andy Challenger. He continued, “At a time when job creation is at its lowest point in years, the optics of announcing layoffs in the fourth quarter are particularly unfavorable.
CBS News reports that the ripple effect is showing up in more modest hiring numbers. Employers added just 103,000 jobs in November, continuing a slow but steady cooling in the labor market. Economists told CBS that this shift doesn’t signal a recession, but it does show that the “red-hot” hiring streak of 2021–2023 has officially faded.
Challenger summarized it like this: “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.” He then continued, “Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market.”
🚨This is INSANE:
The BLS is set to revise DOWN US job numbers by 550,000-950,000 for 12 months ending March 2025 on September 9, according to Goldman Sachs estimates.
That’d be the biggest 12-month downward revision in 15 YEARS.
Total cut over 2 years would reach 1.5M jobs. pic.twitter.com/6S2KDLypQN
— Global Markets Investor (@GlobalMktObserv) August 19, 2025
Layoffs were especially steep in the finance sector, where companies announced more than 130,000 cuts. This was a major jump from last year as banks adapt to higher interest rates and slower deal-making. Media and entertainment companies also continued their industry-wide contractions, cutting more than 40,000 jobs, according to Challenger’s report.
Several companies cited automation, restructuring, and cost-cutting as primary drivers. Others pointed to slower consumer demand heading into the holiday season. Retail layoffs were among the most surprising, with Challenger noting that seasonal hiring was “significantly lower” this year compared to pre-pandemic norms.
US companies announced the most job cuts for any October in more than two decades. “This comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes:” Challenger, Gray & Christmas https://t.co/ixCLoKEuuN pic.twitter.com/y0zmTmQDfa
— Lisa Abramowicz (@lisaabramowicz1) November 6, 2025
Looking ahead, economists say the job market under the Trump administration is still stable overall, even with this year’s surge in cuts. Unemployment remains relatively low, and industries like healthcare and hospitality continue to add workers. Still, both CBS and CNBC report that most analysts expect hiring to stay cautious until inflation cools further and companies feel more confident about economic growth in 2026.
For now, the data paints a clear picture: businesses are bracing, trimming teams, and focusing on efficiency. This year’s layoff totals haven’t hit the extreme levels seen during the height of COVID-19, but it is the sharpest increase since then. And more to the point, it’s a sign that the U.S. job market is entering a more restrained phase.
