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

Announced job cuts from U.S. employers moved further ahead of 1 million for the year in November as corporate restructuring, artificial intelligence and tariffs have helped pare job rolls, consulting firm Challenger, Gray & Christmas reported Thursday.

The firm said layoff plans totaled 71,321 in November, a step down from the massive cuts announced in October but still enough to bring the 2025 total up to 1.17 million. That total is 54% higher than the same 11-month period a year ago and the highest level since 2020, when the Covid pandemic rocked the global economy.

In November, Verizon’s announcement that it would slash more than 13,000 jobs helped drive the total. Tech companies, driven by innovations in AI, listed 12,377 reductions, pushing the sector’s 2025 total up 17% from a year ago. AI itself has been cited for 54,694 layoffs this year.

Tariffs were cited as the driver of more than 2,000 cuts in November and nearly 8,000 year to date. The most-cited reason for the month was restructuring, followed by closings and market or economic conditions.

“Layoff plans fell last month, certainly a positive sign. That said, job cuts in November have risen
above 70,000 only twice since 2008: in 2022 and in 2008,” said Andy Challenger, workplace expert and chief revenue officer at Challenger, Gray & Christmas.

Challenger also pointed out that since the financial crisis in 2008, companies have shifted away from end-year layoff announcements.

“It was the trend to announce layoff plans toward the end of the year, to align with most companies’
fiscal year-ends. It became unpopular after the Great Recession especially, and best practice dictated layoff plans would occur at times other than the holidays,” said Challenger.

November offered some relief from the more than 153,000 cuts announced in October, which was the highest total for the month in 22 years.

The numbers come with concerns rising over the state of the U.S. labor market.

ADP reported Wednesday that private employers cut 32,000 jobs in November, the biggest decline in more than 2½ years.

Hiring prospects have been dim this year as well, according to the Challenger report. Employers have announced 497,151 planned hires, off 35% from the same point in 2024.