- A new report finds U.S. businesses have announced over 1.1 million layoffs so far this year.
- The layoff rate for first 11 months of the year is at it highest level since 2020.
- Business restructuring, AI and market conditions are the primary drivers of job reductions.
Year-to-date layoff announcements by U.S. employers are now at 1,170,821, the highest level since the COVID-19 pandemic rocked the global economy, according to a Thursday report from business consulting firm Challenger, Gray & Christmas.
Restructuring, artificial intelligence and economic/market conditions are cited among the primary drivers of the workforce reductions.
In November, businesses announced plans for 71,321 job cuts, up 24% from the 57,727 cuts announced in the same month last year. But the monthly figure is down 53% from the 153,074 cuts announced in October, according to the report.
“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,” Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas, said in the report.
Alongside the new layoff data, a U.S. Labor Department report Thursday found new jobless claims fell last week to the lowest level in three years, with 191,000 applications for the week ended Nov. 29, the lowest level since September 2022.
Industries most impacted by job cuts
The business sectors announcing the most reductions in employee roles so far this year according to the Challenger, Gray & Christmas report:
Telecommunications providers announced 15,139 job cuts in November, mostly driven by Verizon’s announcement of plans to lay off over 13,000 workers. Last month’s total is the highest since April 2020 when 16,552 layoffs were announced. So far this year, the sector has announced 38,035 layoff plans, up 268% from the 10,331 announced through the same period last year.
Technology companies announced 12,377 job cuts in November and so far this year have announced 153,536. The 11-month total is up 17% from the 130,701 cuts announced over the same period in 2024.
Food industry companies, particularly those that handle beef products, announced 6,708 cuts in November. Year to date, the sector has cut 34,165 jobs, a 26% increase from the 27,060 cuts announced in the same period last year.
Retailers announced 3,290 job cuts in November, up from 2,431 in October. So far this year, the sector has announced 91,954 job cuts, up 139% from the 38,403 cuts announced over the same period in 2024. The report notes U.S. companies are adjusting workforce levels amid softening demand, tariff uncertainty and changing consumer preferences.
Companies cited restructuring efforts as the biggest reason behind layoff decisions. November’s 20,217 layoff announcements pushed the sector total so far in 2025 to 128,255.
Artificial intelligence was cited for 6,280 cuts in November. So far this year, AI is responsible for 54,694 layoff plans. Since 2023, when that reason was first cited, according to the report, AI has led to 71,683 job cut announcements.
Market and economic decisions were behind 15,755 job cuts in November. So far this year, 245,086 job cuts have been attributed to market and/or economic conditions. Tariffs have been cited for 7,908 job cuts this year with 2,061 occurring in November, per the report.
What’s happening with the jobs?
Federal reporting on the employment sector is still lagging following a nearly seven-week-long blackout during the government shutdown, which ended late last month.
The most recent reporting, amid a year that has seen significant weakening of the U.S. labor market, found employers added 119,000 new, non-farm payroll positions in September. The Bureau of Labor Statistics also made downward revisions to July and August job figures, shaving 33,000 off of previous reporting and dragging August’s metric into negative territory at minus 4,000 jobs.
The bureau announced its plans for a simultaneous release of October and November employment reports on Dec. 16.
The national unemployment rate ticked up to 4.4% in September, matching the highest rate since October 2021. According to the most recent data from the Utah Department of Workforce Services, the state’s unemployment rate stood at 3.3% in August.
