US Layoffs Surge in 2025: Over 1 Million Workers Affected Across Multiple Sectors Amid Rising Inflation, Automation and Economic Pressures

Washington, December 11: Layoffs in the United States impacted a large number of workers in 2025. Many companies across sectors like technology, media and more reduced their workforce due to a mix of economic pressures. According to Challenger, Gray & Christmas, October saw the highest number of layoffs since 2003, while hiring in the US reached its lowest level in 14 years.

A new report from Challenger, Gray & Christmas highlighted that over one million people were affected by layoffs that year, the largest number in the past five years. By November, announced job cuts had reached 1.17 million, a 54% increase compared to the same period in 2024. Layoffs Surge to Highest Level in October Since 2003 in US, Hiring Lowest in 14 Years; Technology, Retail, Services, Media and Other Sectors Cut Nearly 1 Million Jobs: Report.

US Layoffs Surge, Millions Affected

November alone saw 71,321 job cuts, up 24% from 57,727 in November 2024. Although this was lower than the 153,000 layoffs reported in October, it was still one of the highest November totals in recent years. Andy Challenger, a workplace expert, told Newsweek that job cuts above 70,000 were uncommon and had only happened twice since 2008, during the financial crisis and in 2022.

Experts pointed to several reasons behind the rise in layoffs. Michael Ryan, a finance analyst, mentioned high inflation, slowing consumer spending and rising interest rates affected businesses, putting them under pressure. Many companies also relied on AI and automation to maintain productivity with fewer staff, especially after rapid hiring in the post-pandemic period.

The tech sector was affected the most, with companies like Verizon announcing significant layoffs. In the United States, tech layoffs were up 17% compared to the previous year, with AI-related layoffs accounting for nearly 55,000 positions in 2025. Corporate restructuring and tariffs also contributed to the overall surge in job losses.

These layoffs weighed on consumer confidence. A report from the Federal Reserve Bank of New York showed that nearly 39% of Americans expected their financial situation to worsen in the coming year, the highest figure since November 2023. This led many to question the long-term stability of the economy.

Despite these challenges, some positive signs remained. Labour Department data showed weekly jobless claims fell to 191,000, the lowest in over three years. However, this drop was influenced by reductions in California and Texas during the Thanksgiving holiday and may not have reflected underlying weaknesses in the broader job market.

Hiring also slowed down. Companies announced 497,151 planned hires in 2025, down 35% from the same time in 2024. This decline suggested the labour market might continue to cool as businesses focused more on cutting costs than expanding. Australia Social Media Ban: Elon Musk's X Restricts Access for Users Under 16, Says 'It’s Not Our Choice, But What the Law Requires'.

In summary, while layoffs slowed slightly in November, 2025 saw record-level job cuts driven by inflation, rising interest rates, automation and restructuring. The US labour market remained fragile, with reduced hiring and continued layoffs shaping economic trends and impacting consumer confidence.

(The above story first appeared on LatestLY on Dec 11, 2025 10:03 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).