October Challenger Report: 153,074 Job Cuts on Cost-Cutting & AI

October Challenger Report: 153,074 Job Cuts Driven by Cost-Cutting and AI

In October, U.S.-based employers announced 153,074 job cuts, marking a 175% increase from the 55,597 cuts reported in October 2024 and a 183% rise compared to the 54,064 cuts from the previous month. This data was released by Challenger, Gray & Christmas, a global outplacement and executive coaching firm.

Year-to-Date Job Cuts and Hiring Trends

Year-to-date (YTD) job cuts reached 1,099,500, which is 65% higher than during the same period in 2024 and 44% above the total cuts announced throughout the entire year of 2024. Meanwhile, hiring plans total 488,077 YTD, down 35%, with 372,520 of these roles being seasonal.

Industry Breakdown

Warehousing led job cuts in October with 47,878 positions eliminated.
The Technology sector followed with 33,281 cuts.

Key Reasons for Job Cuts

The main drivers behind the layoffs in October included cost-cutting measures, advancements and adoption of AI technologies, and challenging market conditions.

“October’s pace of job cutting was much higher than average for the month. 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. Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.

Summary of Job Cuts Growth

Employers have announced 1,099,500 job cuts through October, up from 664,839 during the first ten months of the previous year, demonstrating a significant trend toward workforce reductions.

These figures indicate an ongoing adjustment in the job market as economic pressures and technological changes reshape employment landscapes.

Author’s Summary

The striking rise in job cuts driven by cost pressures and AI adoption highlights the increasing challenges facing workers amid shifting economic and technological conditions.

Challenger, Gray & Christmas, Inc. — 2025-11-07