U.S. corporate layoffs reach 1.17 million in 2025 as AI, tariffs, and restructuring accelerate job cuts; highest since the pandemic

U.S. companies have now announced more than 1.17 million layoffs this year, the highest level since the 2020 shock. Challenger, Gray & Christmas released fresh figures on Thursday showing that the wave of job cuts has stretched well past the one-million mark, driven by restructuring plans, automation, and growing pressure from tariffs.

November alone saw 71,321 announced cuts. It’s a pullback from October’s staggering 153,000, but still far above what the labor market absorbed in earlier years. The year-to-date total is running 54% higher than the same period in 2024, signaling a corporate reset that’s speeding up as executives prepare for 2026, CNBC reported.

Verizon’s plan to eliminate more than 13,000 jobs was one of the biggest factors in November’s numbers. Tech companies also continued trimming headcount as automation projects advance. The sector posted 12,377 reductions last month, pushing its 2025 total higher and tying many of the decisions to the rapid adoption of artificial intelligence. Employers have cited AI in 54,694 layoffs so far this year, a figure that continues to climb as companies rework product lines, support operations, and internal workflows.

Tariffs added another pressure point. They were cited as the cause of more than 2,000 cuts in November and nearly 8,000 so far this year. Restructuring remained the top reason for layoffs, followed by closings and broader 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. He noted a shift that began after the financial crisis: companies pulled back from the old habit of announcing layoffs during the holiday period. “It became unpopular after the Great Recession, especially, and best practice dictated layoff plans would occur at times other than the holidays.”

November brought some relief after October’s historic surge, but the broader labor picture is still flashing mixed signals. ADP reported that private employers cut 32,000 jobs in November — the steepest drop in more than 2.5 years — adding to concerns about the pace of hiring and investment.

Challenger’s report also pointed to softer hiring plans. Employers have announced 497,151 intended hires this year, down 35% from the same point in 2024. That slowdown suggests companies are taking a more cautious stance as they face tighter margins, higher automation costs, and uncertainty about demand heading into the new year.

Yet government data continues to paint a different picture. The Labor Department reported that weekly jobless claims unexpectedly fell to 191,000, the lowest in more than three years. The drop — driven mainly by large declines in California and Texas — may have been shaped by Thanksgiving’s timing, but it highlights how uneven the data has become. Layoff announcements are rising at the corporate level, but official claims data still signal strong employment.

The tension between these two trends is defining the labor climate as the year winds down. Companies are cutting deeper on paper, hiring plans are thinning out, and automation-related decisions are reshaping several large sectors. But the official numbers still show a job market holding firm, at least for now.

Major Layoff Announcements in 2025

These announcements span nearly every major industry — tech, logistics, retail, media, manufacturing, and finance — underscoring how widespread cost-cutting has become.