Highest number of layoffs recorded in 2025 since the start of the pandemic: Challenger

In 2025, over 1.17 million Americans have been laid off, marking the highest level of job losses since the COVID-19 pandemic began in 2020, according to a Thursday report from outplacement firm Challenger, Gray & Christmas. This represents a 54% rise compared to the first 11 months of 2024.

November saw a slowdown from October's more than 153,000 job cuts, but still, 71,321 positions were eliminated. A significant portion of Novembers reductions came after Verizon announced 13,000 job cuts. Historically, November has not witnessed layoffs at this scale since 2022.

At the same time, hiring activity remains weak, reaching its lowest level in 15 years. By the end of November, U.S. employers had announced just 497,151 planned hires, a 35% decrease from the same period in 2024. The 2025 figure includes seasonal hiring, which Challenger did not count prior to 2012, making the decline even more significant.

Challenger noted that December could see a temporary increase in hiring due to holiday spending during Black Friday and Thanksgiving. However, these positions may not last into the new year, according to Andy Challenger, chief revenue officer and workplace expert at the firm.

Data from ADP also highlighted private sector challenges, reporting 32,000 jobs lost last monththe largest drop in over two-and-a-half years. Restructuring was the leading reason for layoffs, with company closures, market conditions, and tariffs contributing to the remainder.

While Challengers report does not carry the official weight of Labor Department statistics, it has become a key reference this year, especially after the government shutdown disrupted the October jobs report. The November federal report has also been delayed, now scheduled for release on December 16, following the Federal Reserves meeting.

Author: Gavin Porter