Sep 04 Pharma and Finance Lead as August 2025 Job Cuts Rise 39% to 85,979
U.S.-based employers announced 85,979 job cuts in August, up 39% from the 62,075 announced in July. It is up 13% from the 75,891 announced in the same month last year, according to a report released Thursday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas.
August’s total was the highest for the month since 2020 when 115,762 job cuts were recorded. After 2020, it is the highest August total since the thick of the Great Recession in 2008, when 88,736 cuts were announced. August marks the sixth time this year that the job cut total surpassed that of the corresponding month one year prior.
So far this year, companies have announced 892,362 job cuts, the highest YTD since 2020 when 1,963,458 were announced. It is up 66% from the 536,421 job cuts announced through the first eight months of last year and is up 17% from the 2024 full year total of 761,358.
“After the impact of DOGE on the Federal Government, employers are citing economic and market factors as the driver of layoffs. We’ve also seen a spike in cuts due to operation or store closings and bankruptcies this year compared to last,” said Andrew Challenger, Senior Vice President and labor expert for Challenger, Gray & Christmas.
WHICH INDUSTRIES ARE CUTTING THE MOST IN 2025?
Pharmaceuticals
Pharmaceutical companies announced plans to cut 19,112 jobs in August, for a total of 22,433. This is an increase of 142% from the 9,254 cuts in this sector during the same period last year. The industry is facing increasing competition as patents expire, while also refocusing on higher-profit products. Many of these companies are also implementing AI, causing restructuring and leading to job loss.
Financial
Financial firms announced 18,092 job cuts in August for a total of 44,986, up 27% from 35,526 cuts announced through August 2024.
“Economic uncertainty and market volatility have increased pressure on companies in finance to tighten belts,” said Challenger.
Retail
Retailers have announced 83,656 job cuts through August, up 242% from the 24,489 cuts announced during the same period last year.
“Retailers are being hard hit by tariffs, inflation, and ongoing economic uncertainty causing bankruptcies and closures. If tariffs and consumer spending constraints play out, the approaching holiday shopping season may see fewer seasonal hires and, in fact, high layoffs,” said Challenger.
Non-Profits
Non-Profits announced 4,325 job cuts last month for a total of 22,151. This is an increase of 449% from the 4,032 job cuts announced in the first eight months of 2024. This is the most job cuts for the sector since 2020, when 50,091 job cuts were announced through August.
Technology
Technology continues to be a leading job-cutting industry in August with 12,988. While it trails only Government in announced job cuts this year with 102,239, cuts in this sector are down 3% from the 105,426 cuts announced during the same period last year.
Media & News
Media companies, which include streaming services and studios, have announced 13,729 job cuts so far in 2025. That is up 13% from the 12,122 cuts announced during the same period last year. This increase has not been felt in the News industry, which Challenger tracks as a subset of Media. Through August, News organizations have announced 1,547 cuts, half of the 3,102 cuts announced in the same period last year.
WHY ARE COMPANIES CUTTING IN 2025?
“DOGE Actions” remains the leading reason for job cut announcements in 2025, cited in 292,279 planned layoffs so far this year. This includes direct reductions to the Federal workforce and its contractors. An additional 17,346 cuts have been attributed to DOGE Downstream Impact, such as the loss of funding to private non-profits and affiliated organizations.
Market and Economic Conditions are the second-most cited reason for workforce reductions, responsible for 199,297 cuts year to date. This reflects employers’ continued response to economic uncertainty, inflation, and shifting demand across sectors.
Closings of stores, units, or plants have led to 131,030 layoffs so far this year, up from 83,536 during the same period last year. Restructuring efforts have resulted in 96,871 job cuts. Bankruptcies accounted for another 35,744 layoffs, up from 10,356 through August 2024.
Technological Updates, including automation and possibly AI implementation, have led to 20,219 job cuts in 2025. Another 10,375 were explicitly attributed to Artificial Intelligence. No job cuts were recorded for these reasons in August.
WHERE ARE JOB CUTS OCCURING THIS YEAR?
Challenger tracks job cuts by company headquarters location, unless an announcement specifies the geographic location of the layoffs.
The East region has experienced the largest year-over-year increase in job cuts, rising 224% from 147,368 in 2024 to 477,092 in 2025. This surge is driven by reductions at Federal agencies counted in Washington, D.C., where cuts jumped from 34,526 last year to 294,696 this year. New Jersey posted the sharpest state-level increase, climbing 697% from 7,754 to 61,760, while New York rose 33% from 59,114 to 78,440. By contrast, several states saw declines: Massachusetts fell 31%, Vermont slipped 5%, and Connecticut declined 80%.
The Midwest saw a more moderate increase, with cuts rising 8.3% from 89,664 in 2024 to 97,086 in 2025. Ohio saw an 89% increase from 20,832 to 39,491, while Nebraska spiked more than 500% from 753 to 4,869. On the other hand, several states saw declines: Wisconsin dropped 69%, Indiana fell 48%, and Michigan declined 35%
In the West, job cuts remained essentially flat, totaling 231,969 in 2025 compared to 234,141 in 2024. California drove the largest share, rising 24% from 108,863 to 135,241. Arizona also posted a notable increase of 68%, while Washington rose 54% from 18,531 to 28,614. However, Texas, Nevada, and Oregon posted declines.
The South reported a 32% increase, rising from 65,248 in 2024 to 86,215 in 2025. Georgia nearly doubled, climbing 83% from 16,585 to 30,364, while Florida saw a 65% jump from 11,168 to 18,402. Alabama also more than doubled, rising from 3,250 to 6,824. By contrast, several states saw modest declines: North Carolina (–21%), South Carolina (–31%), Tennessee (–4%), and Virginia (–9%).
HIRING PLANS IN 2025
So far this year, employers plan to add 87,626 jobs, up 10% from the 79,697 cuts announced through the first eight months of 2024. Employers announced plans to add 1,494 jobs in August, the lowest total for the month since Challenger began tracking hiring plans in 2009.
“September is typically when we begin to see large seasonal hiring announcements, which foretell how Retailers expect the holiday season to go. Coming off the lowest August on record for hiring plans, it may be a troubling sign,” said Challenger.