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Global Desk U.S. employers announced 153,074 job cuts in October, a 175% jump from a year ago, making it the worst October for layoffs since 2003, according to Challenger, Gray & Christmas. Companies blamed cost-cutting and artificial intelligence (AI) for these job losses, as they try to save money and prepare for AI-driven changes in work, as per the X post by The Kobeissi Letter.BREAKING: US employers announced 153,074 jobs cuts in October, marking a +175% surge and the highest for any October since 2003, per Challenger Gray.Employers cite cost-cutting and AI as the primary drivers of these cuts.We need more rate cuts.— The Kobeissi Letter (@KobeissiLetter) November 6, 2025 In the first 10 months of 2025, U.S. firms have announced 1,099,500 job cuts, up 44% compared to 761,358 cuts in all of 2024. Technology companies led private-sector layoffs, with warehousing also affected, according to Bloomberg. AI layoffs and cost cutting hit workers“October’s pace of job cutting was much higher than average for the month,” said Andy Challenger, chief revenue officer at Challenger, Gray & Christmas. Challenger said some sectors are “correcting after the hiring boom of the pandemic,” while AI adoption, rising costs, and weak consumer and corporate spending are causing companies to tighten budgets and freeze hiring.Challenger added that “those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market”, as per the report by Yahoo Finance. Recent layoffs have come from Amazon (AMZN), Target (TGT), UPS (UPS), Meta, and Paramount Skydance. Year-to-date layoffs are the highest since 2020, when the pandemic badly hit the labor market.Live EventsJob market weakens as hiring slowsThe Labor Department hasn’t released recent job data because of the longest government shutdown in U.S. history, so official numbers for September and October are missing. The August report showed a stable but slowing labor market, with unemployment at 4.3% and few new job openings. ADP Research found that private employers added 42,000 jobs in October, showing slight improvement but continued weakness in hiring, as per the report by Bloomberg. Employers have announced only 488,077 planned hires through October 2025, down from 750,333 last year, the lowest since 2011.ALSO READ: Paramount layoffs: 2,000 employees to be sacked after $8 billion merger with Skydance - which departments to be impacted?Seasonal hiring plans are the lowest since 2012, according to Challenger. “It’s possible with rate cuts and a strong showing in November, companies may make a late season push for employees, but we do not expect a strong seasonal hiring environment in 2025,” said Andy Challenger, as stated by Bloomberg. Challenger compared this moment to 2003, when cellphones disrupted jobs, saying AI is now reshaping industries the same way.Analysts say these layoffs could raise fears about the job market’s health, especially as newly unemployed people face fewer openings. As per Bloomberg, the data seems to conflict with Federal Reserve Chair Jerome Powell’s recent claim that the job market is only showing a “very gradual cooling”. With the government shutdown blocking public reports, economists are relying on private sources like ADP and Revelio Labs for labor market updates.October’s report shows that AI, high costs, and weak spending are driving the biggest October job cuts in 22 years, signaling a cooling labor market as companies brace for change.FAQsQ1. Why did layoffs rise sharply in October 2025?Layoffs jumped 175% in October 2025 because companies cut costs, reduced pandemic-era staff, and prepared for AI changes, according to Challenger, Gray & Christmas.Q2. Which industries and companies were most affected by layoffs?Tech firms led the layoffs, with major cuts from Amazon, Target, and UPS, making 2025 the worst year since the pandemic for job losses.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onU.S. layoffs 2025job cuts October 2025Amazon layoffsAI impact on jobsLayoffsU.S. layoffs October 2025 (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onU.S. layoffs 2025job cuts October 2025Amazon layoffsAI impact on jobsLayoffsU.S. layoffs October 2025(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless Explore More Stories123
