Oct 02 September Job Cuts Fall 37% From August; YTD Total Highest Since 2020, Lowest YTD Hiring Since 2009
U.S.-based employers announced 54,064 job cuts in September, a 37% drop from the 85,979 cuts announced in August. It is down 26% from the 72,821 announced in the same month last year. September marks the third time this year job cuts were lower than the corresponding month one year earlier, according to a report released Thursday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas.
In the third quarter, planned layoffs by U.S. employers totaled 202,118, the highest Q3 total since 2020, when 497,215 job cuts were recorded. It is up 16% from the 174,597 planned cuts announced in the third quarter of 2024, and down 18% from the 247,256 recorded in the previous quarter.
So far this year, companies have announced 946,426 job cuts, the highest YTD since 2020 when 2,082,262 were announced. It is up 55% from the 609,242 job cuts announced through the first three quarters of last year and is up 24% from the 2024 full year total of 761,358. The 2025 year-to-date total is the fifth highest in the 36 years Challenger has reported.
“It’s very likely job cut plans are going to surpass a million for the first time since 2020 and for the ninth time in our series. Previous periods with this many job cuts occurred either during recessions or, as was the case in 2005 and 2006, during the first wave of automations that cost jobs in manufacturing and technology,” said Andy Challenger, Senior Vice President and labor expert for Challenger, Gray & Christmas.
“Right now, we’re dealing with a stagnating labor market, cost increases, and a transformative new technology. With rate cuts on the way, we may see some stabilizing in the job market in the fourth quarter, but other factors could keep employers planning layoffs or holding off hiring,” he added.
WHICH INDUSTRIES ARE CUTTING THE MOST IN 2025?
Government
The Government sector has announced 299,755 planned job cuts this year, of which 289,363 were Federal workers impacted by DOGE. In September, Challenger tracked 5,656 rescinded layoffs and attempts to rehire previously laid off workers at eight agencies. These are counted as hiring plans and reported in the firm’s hiring figures represented in Tables 6 and 8.
Technology
Through September, Technology companies have announced 107,878 job cuts, including 5,639 last month. This is an 8% decline from the 116,856 job cut plans from Tech companies during the same period last year. Technology companies have cut 241,866 jobs since January 2024.
“Tech firms are undergoing incredible disruption with AI that is not only costing jobs, but also making it difficult to land positions, particularly for entry-level engineers. Tech leaders have stressed that AI is changing the nature of work, and more companies are requiring their teams be trained on it,” noted Challenger.
In September, Challenger tracked 7,000 job cuts due to artificial intelligence specifically, bringing the total to 17,375. Another 20,219 cuts have been attributed to technological updates that likely include artificial intelligence.
Retail
Retailers have announced 86,233 job cuts through September, up 203% from the 28,440 cuts announced during the same period last year.
“Now is when we typically see Retailers bulk up for the holidays, but so far, plans have been slow to come, reflecting caution. With lower consumer confidence and tariff pressures ahead, we predict the hiring season will be muted,” said Challenger. (See Table 7)
Media & News
Media companies, which include streaming services, studios, and news, have announced 14,060 job cuts so far in 2025. That is up 9% from the 12,914 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 September, News organizations have announced 1,738 cuts, down 49% from 3,402 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 293,753 planned layoffs so far this year. This includes direct reductions to the Federal workforce and its contractors. An additional 20,976 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 208,227 cuts year to date. This reflects employers’ continued response to economic uncertainty, inflation, tariffs, and shifting demand across sectors.
Closings of stores, units, or plants have led to 144,652 layoffs so far this year, up from 97,590 during the same period last year. Restructuring efforts have resulted in 100,450 job cuts, while Bankruptcies accounted for another 37,590 layoffs, up from 10,700 through September 2024.
Technological Updates, including automation and possibly AI implementation, have led to 20,219 job cuts in 2025. Another 17,375 were explicitly attributed to Artificial Intelligence, including 7,000 announced in September.
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 continues to experience the largest year-over-year increase in job cuts, rising 193% from 166,060 in 2024 to 487,049 in 2025. This surge is driven by reductions at Federal agencies counted in Washington, D.C., where cuts jumped 759%, from 34,788 last year to 298,901 this year. New Jersey posted one of the sharpest state-level increases, climbing 449% from 11,524 to 63,217, while New York rose 24% from 65,070 to 80,428. By contrast, several states saw declines: Massachusetts fell 31%, Vermont slipped 5%, and Connecticut declined 82%.
The Midwest has seen essentially flat job cuts compared to last year, totaling 102,838 in 2025 versus 102,168 in 2024. Ohio reported the largest increase, climbing 76% from 22,651 to 39,847, while Nebraska spiked more than 500% from 753 to 5,032. Meanwhile, Wisconsin dropped 64%, Indiana fell 49%, and Michigan declined 34%.
In the West, job cuts dipped slightly, totaling 261,097 in 2025 compared to 266,716 in 2024. California drove the largest share, rising 13% from 127,997 to 144,528. Arizona also posted a notable increase of 78%, while Washington nearly doubled, up 95% from 19,310 to 37,550. However, several states saw steep declines: Texas fell 34%, Nevada dropped 75%, and Oregon declined 61%.
The South reported the steepest percentage growth, rising 29% from 74,298 in 2024 to 95,442 in 2025. Georgia jumped 80% from 17,422 to 31,339, while Florida saw a 73% increase from 11,897 to 20,550. Alabama also more than doubled, rising 118% from 3,250 to 7,089. By contrast, several states saw modest declines: North Carolina (–11%), South Carolina (–28%), Tennessee (–33%), and Arkansas (–63%).
HIRING PLANS IN 2025
So far this year, employers plan to add 204,939 jobs, down 58% from the 483,590 announced hiring plans through September 2024. Most of this drop is due to a low number of seasonal hiring announcements. Last month, Challenger tracked 100,800 seasonal hiring plans, down from 401,850 announced by the beginning of October 2024. September marks the lowest year-to-date hiring plans since 2009, when 169,385 new hires were recorded.