A wave of job cuts is sweeping through corporate America as companies tighten spending and AI accelerates automation, marking the sharpest October layoff tally in more than two decades.
In a new report, outplacement firm Challenger, Gray & Christmas says US employers announced 153,074 job cuts last month as executives respond to cooling demand, rising costs and growing integration of artificial intelligence across operations.
The firm notes that layoff announcements have climbed rapidly through the fall, with more companies signaling restructuring pressure and fewer displaced workers finding roles quickly.
“October’s pace of job cutting was much higher than average for the month. Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes. Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market.”
Challenger points out that dismissals are now running at the highest year-to-date pace since the pandemic period, with signals emerging of stress in interest-rate-sensitive sectors and businesses exposed to slowing discretionary spending.
“Over the last decade, companies have shied away from announcing layoffs in the fourth quarter, so it’s surprising to see so many in October. With the onset of social media, and the ability for workers to share their negative experiences with their employers, the trend of announcing layoffs before the holidays fell away, a practice that seemed particularly cruel.”
The firm says technology, retail and warehousing led layoff activity in October, citing automation initiatives, overcapacity and cost-reduction programs as core drivers of staffing plans.
“This is the highest total for October in over 20 years, and the highest total for a single month in the fourth quarter since 2008. Like in 2003, a disruptive technology is changing the landscape.”
Challenger adds that planned hiring has slowed as well, with employers announcing fewer seasonal roles than in any year since the firm began tracking the data in 2012.
“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.”
Some of the Big Tech names that announced job cuts last month include Amazon and Meta.
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