Key Takeaways
- US companies cut 153,074 jobs in October 2025 – highest in 20 years
- Year-to-date layoffs reach 1.1 million, up 65% from 2024
- AI adoption and cost-cutting drive massive workforce reductions
- Technology and warehousing sectors hit hardest
American companies announced a staggering 153,074 job cuts in October 2025, marking the highest monthly total in over two decades. This represents a massive 183% surge from September and signals deepening labor market concerns as artificial intelligence reshapes industries.
The October figure brings year-to-date layoffs to 1,099,500 – a 65% jump from last year and the highest level since the COVID-19 pandemic in 2020.
“Like in 2003, a disruptive technology is changing the landscape,” said Andy Challenger, workplace expert at Challenger, Gray & Christmas. “At a time when job creation is at its lowest point in years, the optics of announcing layoffs in the fourth quarter are particularly unfavorable.”
Sector Breakdown: Technology and Warehousing Lead
Technology and warehousing sectors drove the downturn, with Challenger tracking nearly 450 individual job cut plans in October. Companies cite AI adoption, softening consumer spending, and rising costs as primary drivers.
The wave of layoffs contradicts Federal Reserve Chair Jerome Powell’s characterization of only “very gradual cooling” in the job market.
Major Company Layoffs
Amazon: 14,000 Corporate Roles
Amazon eliminated approximately 14,000 corporate positions (4% of corporate workforce) to reduce bureaucracy and shift resources toward strategic bets.
“This generation of AI is the most transformative technology we’ve seen since the Internet,” said Beth Galetti, Amazon’s senior vice president.
Initial reports suggest total layoffs could reach 30,000, potentially the largest in Amazon’s history.
UPS: 48,000 Jobs Lost
United Parcel Service cut over 48,000 employees as part of reorganization reducing Amazon package delivery services. Increased automation in 35 facilities drove productivity gains.
Intel: 20,000 Employees
Chipmaker Intel laid off over 20,000 employees under new CEO Lip Bu Tan, affecting significant portion of its 108,900-person workforce to regain competitive edge.
Microsoft: 6,000 Positions
Microsoft eliminated 6,000 positions (3% of workforce) in May, affecting all business levels including LinkedIn international offices. Even AI director Gabriela de Queiroz was among those let go.
Salesforce: 4,000 Customer Support Roles
Cloud software company Salesforce cut over 4,000 customer support roles. CEO Marc Benioff stated: “I’ve reduced it from 9,000 heads to about 5,000, because I need less heads” due to AI impact.
Other Significant Cuts
- Meta: 600 AI division employees from Superintelligence Labs
- Applied Materials: 1,400 semiconductor equipment jobs (4% of workforce)
- Chegg: 388 education jobs (45% of workforce) blaming “AI realities”
- Rivian: 600 automotive jobs amid EV market pullback
- Target: 1,800 corporate positions (8% of corporate jobs)
Broader Market Impact
The layoff wave extends to Starbucks, Delta Air Lines, CarMax, Molson Coors, Paramount, Google, Paycom, and others. Cost-cutting caused 50,437 October layoffs, while AI drove 31,039 cuts.
The nonprofit sector announced 27,651 job cuts this year – a 419% increase from 2024 due to government funding reductions.
US employers announced only 488,077 planned hires through October, down 35% from 2024 and the lowest since 2011.
“It’s possible with rate cuts and a strong showing in November, companies may make a late season push for employees, but at this point, we do not expect a strong seasonal hiring environment in 2025,” Challenger warned.
The Federal Reserve has lowered interest rates twice since September, with another expected in December. Some leaders remain optimistic about AI’s long-term employment impact, with JPMorgan’s Jamie Dimon suggesting headcount may stabilize as workers are redeployed.
