US records over 153,000 job losses October 2025, worst in 22 years −Report

*United States’ employers announce 1.1 million layoffs October 2025, up 65 percent from the same period 2024, and the highest since 2003, stating these are driven by Artificial Intelligence, cost-cutting, and a cooling Labour market indices in the American country

Isola Moses | ConsumerConnect

A fresh report indicates that it was harder to hold onto a job October 2025, in the United States (US) due to cost-cutting, softening consumer and corporate spending, and application of Artificial Intelligence (AI) measures for restructuring, among other factors in the American country’s economy.

Report from outplacement firm Challenger, Gray & Christmas showed the US employers announced 153,074 job cuts last month, a figure noted as a stunning 175 percent increase from a year earlier, and 183 percent more than what obtained September this year.

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ConsumerConnect also gathered that the total marks, echoing the tech shakeups of 2003 when cell phones began reshaping industries.

Andy Challenger, Chief Revenue Officer at the firm, said: “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.”

According to report, through the first 10 months of this year, United States’ employers have announced 1.1 million layoffs, up 65 percent from the same period last year and already exceeding the full-year total for 2024.

The last time job cuts were this high was in 2020, during the height of pandemic disruptions, report noted.

AI, automation and overcapacity drive cuts

While layoffs spread across nearly every sector of the US economy, the technology industry once again, led private-sector job cuts, announcing 33,281 layoffs last month, a sixfold increase from September 2025, as companies restructure for AI integration and efficiency.

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The sector’s total for the year now exceeds 141,000 job cuts, up 17 percent from 2024, according to report.

Specifically, the US warehousing sector saw the largest single-month spike, announcing 47,878 layoffs October, compared to fewer than 1,000 in September.

Analysts point to ongoing automation and post-pandemic overcapacity as key drivers, ConsumerAffairs report also said.

Retail remains under pressure, with 88,664 cuts so far this year, up 145 percent from 2024, amid shifting consumer habits and continued store closures.

Even consumer products and services firms, once considered stable employers, reported sharp increases in job reductions due to rising costs and softening demand.

Meanwhile, non-profits saw layoffs surge 419 percent this year, reflecting the downstream impact of declining government funding.

Between cost-cutting and AI

In October, Cost-Cutting was the top reason companies cited for layoffs, responsible for 50,437 job cuts.

Artificial Intelligence also ranked second, prompting 31,039 layoffs as companies continue to automate workflows and streamline staffing.

AI-driven restructuring has been linked to over 48,000 job losses thus far this year.

Other key drivers include market conditions and facility closures, with more than 160,000 job cuts tied to store, plant, or unit shutdowns this year.

Challenger noted that this wave of job cuts marks a departure from recent years, when employers were reluctant to announce layoffs late in the year.

He said: “Over the last decade, companies have shied away from announcing layoffs in the fourth quarter.

“With social media amplifying the reputational risks, such announcements were often delayed until the new year.”

Besides, making things tougher for laid-off employees, it may be harder to find a new job, report stated.

Through October this year, employers announced 488,077 planned hires, down 35 percent from 2024 and the lowest year-to-date total since 2011.

Only 372,520 seasonal hires were announced, marking the weakest pre-holiday hiring environment since Challenger began tracking such data in 2012.

Challenger, Chief Revenue Officer at outplacement firm Challenger, Gray & Christmas, however, said: “It’s possible with rate cuts and a strong showing in November, companies may make a late-season push for employees.

“But at this point, we do not expect a strong seasonal hiring environment in 2025.”

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