Employers have eliminated 1.1 million jobs in 2021. Here's the reason.

Through November of this year, employers have eliminated over 1.1 million positions, marking the highest level of layoffs since 2020, when the pandemic led to 2.2 million job losses, according to a recent report by outplacement firm Challenger, Gray & Christmas. This figure represents a 54% increase compared with the 761,358 jobs cut during the same period last year. Since 1993, this is only the sixth time that job reductions in the first 11 months of the year have exceeded 1.1 million.

Technology Sector Leading Layoffs

The tech industry is at the forefront of this years workforce reductions, with 153,536 jobs cut through November, a 17% rise from the 130,701 layoffs recorded by tech companies in the same period in 2024. Amazon has been among the major firms announcing significant staff reductions, including a plan in October to eliminate 14,000 positions as the company leverages AI technologies to improve efficiency.

Retail Faces Weak Seasonal Hiring

The retail industry has also trimmed 91,954 jobs through November, as consumers adjust spending amid rising prices. Traditionally, retailers boost hiring during the holiday season, but 2025 is shaping up to be the weakest year for seasonal employment in 15 years. Retailers are expected to bring on between 265,000 and 365,000 temporary workers this year, down from 442,000 last year, according to the National Retail Federation.

Other Industries With Significant Cuts

• Services: 69,089
• Telecommunications: 38,035
• Food: 34,165
• Nonprofit: 28,696
• Media and news: 17,163

Main Causes of Layoffs

A major driver of the layoffs was the Department of Government Efficiency (DOGE), which cut nearly 300,000 federal jobs and indirectly affected 21,000 positions at private and nonprofit organizations that lost federal funding. Market and economic conditions were responsible for another 245,086 layoffs, while store, unit, or department closures accounted for 178,500 job losses. Corporate restructuring caused an additional 128,255 layoffs.

Advances in artificial intelligence contributed to 54,700 job cuts, while tariffs were linked to nearly 8,000 reductions. Trade levies have increased operational costs, prompting some businesses to scale back on labor. Smaller companies, which operate on narrow margins, have been particularly impacted by these costs and ongoing policy uncertainty. Payroll data from ADP indicates that private-sector employers with fewer than 50 employees cut 32,000 jobs in November.

Author: Harper Simmons