2025 layoffs surpass 2020 levels: Research

U.S. employers have eliminated over 1.17 million positions in 2025, marking the highest level of layoffs since the onset of the COVID-19 pandemic, according to a recent analysis by outplacement firm Challenger, Gray & Christmas.

Between January and November, companies cut 1,170,821 jobs, representing a 54% rise from the 761,358 positions removed during the same period in 2024. For comparison, in the first 11 months of 2020, more than 2.22 million jobs were slashed. Only three other periods since 1993 have seen November layoffs reach comparable levels: 1,956,876 in 2001, 1,373,906 in 2002, and 1,242,936 in 2009.

November alone accounted for 71,321 job cuts, a 24% increase from 57,727 a year earlier. This is the highest number of layoffs recorded for November since 2022, when 76,835 jobs were cut. However, Novembers layoffs were roughly half the number of the previous month, which saw 153,074 positions eliminated.

Andy Challenger, chief revenue officer at the firm, commented, Layoff plans dropped last month, which is a positive signal. Still, November job cuts above 70,000 have only occurred twice since 2008: in 2022 and 2008.

The surge in November layoffs was largely driven by telecommunications companies, which cut 15,139 jobs, the highest monthly total since April 2020 when 16,552 positions were eliminated. So far in 2025, the sector has reduced 38,035 roles, a 268% increase compared to 10,331 cuts in the first 11 months of 2024.

Other industries with notable layoffs in November include technology, food production, services, and retail. The primary cause for job cuts last month was restructuring, which accounted for 20,217 positions, bringing the year-to-date total to 128,255.

Store, unit, or department closures led to 17,140 layoffs in November, totaling 178,531 for the year. Market and economic factors were cited for 15,755 cuts in November, adding up to 245,086 so far in 2025.

Implementation of artificial intelligence contributed to 6,280 layoffs in November. In total, AI was listed as the main reason for 54,694 job cuts this year. Since AI was first mentioned as a factor in 2023, it has accounted for 71,683 layoffs.

Author: Chloe Ramirez