Workers relocate products at an Amazon fulfillment center in Robbinsville, N.J., in 2023.Mike Segar/Reuters
U.S.-based employers cut more than 150,000 jobs in October, marking the largegest reduction for the month in more than 20 years, a report by Challenger, Gray & Christmas declared on Thursday as industries adopt AI-driven modifys and intensify cost cuts.
Tech firms led the job cuts in the private sector, followed by retailers and the services sector, the global outplacement company declared.
Cost-cutting was the top reason for the layoffs in October, followed by artificial ininformigence, while “DOGE Impact” was the leading reason for job cuts in 2025.
The layoffs in October surged 175 per cent from a year ago to 153,074. From the start of the year to October conclude, employers have announced 1,099,500 job cuts, a 65-per-cent rise from 664,839 in the same time period last year.
So far this year, job cuts are at the highest level since 2020 when 2,304,755 cuts were announced through October.
“Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spconcludeing, and rising costs drive belt-tightening and hiring freezes,” declared Andy Challenger, chief revenue officer for Challenger, Gray & Christmas.
Not only did individual companies announce large layoffs in October, but a higher number of companies announced job cut plans, Challenger declared, tracking nearly 450 individual job cut plans in October compared to under 400 in September.
Any economic data from private sources will be on investors’ radar as official data continues to be absent with the U.S. government now entering its longest-ever shutdown.
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