The US job market seems to be in some serious trouble. Consulting firm Challenger, Gray & Christmas reported Thursday that announced job cuts from US employers moved further ahead of 1 million for the year in November as corporate restructuring, artificial intelligence and tariffs have helped pare job rolls.
Reportedly, 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.
“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.
READ: Layoffs in a boom: Why America’s tech giants are cutting jobs amid growth (November 30, 2025)
“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.
Reportedly, tariffs were cited as the driver of more than 2,000 cuts in November and nearly 8,000 to date with the most-cited reason for the month being restructuring, followed by closings and market or economic conditions.
The year 2025 has been one of the most layoff-heavy periods in the United States since the pandemic era, with employers announcing approximately 1.17 million job cuts through November. These figures, reported by Challenger, Gray & Christmas, make 2025 the first year since 2020 in which announced layoffs have exceeded one million.
While this marks a significant shift after several years of strong post-pandemic hiring, it is important to emphasize that these numbers represent announced job cuts, which may not all translate into actual job losses.
October 2025 stands out as particularly severe, with 153,074 announced cuts, the highest October total since 2003. In November, employers announced 71,321 cuts, a substantial drop from October but still higher than the same month in 2024. Hiring plans also slowed sharply, suggesting that companies were simultaneously reducing staff and becoming more conservative about future expansion.
Layoffs spanned numerous sectors, including technology, telecommunications, retail, warehousing, consumer services, and even the public sector. Tech companies, in particular, continued restructuring efforts started in earlier years, citing efficiency goals, cost pressures, and shifts in product strategies. However, while many companies referenced automation or AI as contributing factors, the exact share of cuts directly caused by automation remains uncertain, and reported reasons often combine several pressures.
Crucially, the Challenger numbers reflect plans, not completed separations. Some layoffs may occur over several quarters, may be adjusted, or may never fully materialize. In addition, official government labor data for parts of 2025 was delayed at times, making it difficult to precisely match announced cuts with changes in unemployment claims or jobless levels.
Overall, the U.S. job market in 2025 reflects a period of significant adjustment rather than a single, clear-cut crisis. The surge in announced layoffs points to companies reassessing their cost structures, responding to economic pressures, and attempting to position themselves for long-term competitiveness.