U.S.-based employers announced 54,064 job cuts in September, a 37% drop from the 85,979 cuts announced in August, according to a recent report from the global outplacement and business and executive coaching firm Challenger, Gray & Christmas.
Nevertheless, the 946,426 job cuts announced since Jan. 1 by U.S. companies is the highest YTD since 2020 when 2,082,262 were announced. The number of announced job cuts is up 55% from the 609,242 job cuts announced through the first three quarters of last year and is the fifth highest in the 36 years that Challenger has reported this data.
“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,” said Andy Challenger, Senior Vice President and labor expert for Challenger, Gray & Christmas. “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.”
Technology Companies
Through September, technology companies have announced 107,878 job cuts, including 5,639 last month. This is an 8% decline from the 116,856 jobs cut 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,” Challenger said. “Tech leaders have stressed that AI is changing the nature of work, and more companies are requiring their teams be trained on it.”
In September, Challenger tracked 7,000 job cuts due to artificial intelligence specifically, bringing the total to 17,375. An additional 20,219 lost jobs were attributed to technological updates that likely include artificial intelligence, Challenger said.
Retailers
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.
Region with Most Announced Jobs Losses
The East 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 in year-over-year job losses: Massachusetts fell 31%, Vermont slipped 5%, and Connecticut declined 82%.
Hiring Plans
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.
In September, 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.
“Right now, we’re dealing with a stagnating labor market, cost increases, and a transformative new technology," Challenger said. "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.”
To read the complete report, go here.
The U.S. Bureau of Labor Statistics failed to produce an employment situation report for the month of September, which would have showed the number of actual U.S. layoffs, because of the federal government shutdown.
