American companies announced 153,074 job cuts in October 2025, marking the highest total for the month in over two decades and signaling deepening concerns about the labor market as artificial intelligence reshapes industries and cost-cutting accelerates across sectors.
The October figure represents a staggering 183% surge from September's 54,064 cuts and a 175% increase compared to October 2024, according to data released by outplacement firm Challenger, Gray & Christmas. This brings the year-to-date total to 1,099,500 job cuts—a 65% jump from the same period 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 and chief revenue officer 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."
The technology and warehousing sectors led the downturn, with Challenger tracking nearly 450 individual job cut plans in October—significantly higher than the roughly 400 announcements in September. The surge comes as companies cite AI adoption, softening consumer and corporate spending, and rising costs as primary drivers for belt-tightening and hiring freezes.
"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," Challenger noted. "Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market."
The wave of layoffs contradicts Federal Reserve Chair Jerome Powell's recent characterization of only a "very gradual cooling" in the job market, raising questions about the true health of employment conditions as newly unemployed Americans face a diminished hiring environment.
Amazon: 14,000 corporate roles cut
E-commerce giant Amazon announced plans to eliminate approximately 14,000 corporate positions in what represents roughly 4% of its corporate workforce. The company's senior vice president of People Experience and Technology, Beth Galetti, explained the cuts as part of efforts to reduce bureaucracy, remove layers, and shift resources toward the company's biggest bets.
"This generation of AI is the most transformative technology we've seen since the Internet, and it's enabling companies to innovate much faster than ever before," Galetti wrote in a message to employees. The company is offering most affected employees 90 days to find new internal roles, with recruiting teams prioritizing internal candidates. Initial reports suggest the total number of layoffs could ultimately reach 30,000, making it potentially the largest corporate job cut in Amazon's history.
UPS: 48,000 workers lose jobs
United Parcel Service has cut over 48,000 employees as part of broader reorganization efforts aimed at reducing delivery services for Amazon packages. The shipping giant, which employed 490,000 workers worldwide at the end of 2024, has deployed additional automation in 35 facilities this year. The layoffs impact both UPS drivers and management roles, with the company citing increased automation driving up productivity as a key factor. According to Challenger's data, the warehousing sector announced 47,878 job cuts in October alone, up dramatically from just 984 in September.
Intel: 20,000 employees laid off
Chipmaker Intel announced major job cuts impacting over 20,000 employees as part of restructuring efforts under new CEO Lip Bu Tan. The layoffs affect a significant portion of Intel's 108,900-person workforce as of December 2024. The cuts are part of efforts to make the company more cost-disciplined and streamlined following manufacturing missteps, as Intel works to regain its competitive edge in the semiconductor industry.
Microsoft: 6,000 jobs gone
Technology giant Microsoft eliminated approximately 6,000 positions in May, representing about 3% of its workforce. The cuts affected all levels of the company's business empire, including certain international offices of Microsoft-owned LinkedIn. Even Microsoft's AI director, Gabriela de Queiroz, was among those let go. The technology sector has been particularly hard hit this year, with Challenger reporting 33,281 job cuts in October alone—nearly six times the September level—bringing the sector's year-to-date total to 141,159 cuts.
Salesforce: 4,000 customer support roles slashed
Cloud software company Salesforce cut over 4,000 customer support roles, according to CEO Marc Benioff. "I've reduced it from 9,000 heads to about 5,000, because I need less heads," Benioff stated while discussing AI's impact on Salesforce operations. The dramatic reduction underscores how artificial intelligence is fundamentally reshaping workforce needs even at companies building AI tools themselves.
Meta: 600 AI Division Employees Cut
Social media giant Meta eliminated roughly 600 jobs from its Meta Superintelligence Labs division in October, which comprises around 3,000 employees focused on the company's AI efforts. The cuts are part of restructuring to address organizational bloat from multiple groups working on overlapping AI projects. Additionally, Meta laid off more than 100 employees in its risk review team. Notably, the cuts did not affect Meta's newest hires on the core team developing "personal superintelligence."
Applied Materials: 1,400 employees let go
Semiconductor manufacturing equipment maker Applied Materials plans to cut approximately 1,400 employees—about 4% of its workforce—to streamline operations. The company, one of the largest U.S.-based makers of semiconductor manufacturing equipment, implemented the cuts amid tighter U.S. export controls on semiconductors. Applied Materials had 35,700 full-time staff as of October last year.
Chegg: 388 jobs lost to AI
Online education company Chegg slashed 45% of its workforce, blaming the "new realities of AI" for its business challenges. The 388 job cuts came after the company had already laid off 22% of its workforce in May. Chegg cited the rising adoption of AI tools reducing traffic from Google to content publishers as damaging to its business model. "As a result, and reflecting the company's continued investment in AI, Chegg is restructuring the way it operates its academic learning products," the company stated.
Rivian: 600 automotive jobs Cut
Electric vehicle manufacturer Rivian cut 600 jobs—approximately 4% of its workforce—amid an EV market pullback, marking the company's third layoff round this year. While details of the latest cuts remain undisclosed, earlier reductions in June and September affected 100 to 150 employees in commercial and manufacturing teams. The consumer products sector, which includes automotive, announced 3,409 job cuts in October, according to Challenger data.
Target: 1,800 corporate positions eliminated
Retail giant Target announced plans to eliminate 1,800 roles, representing about 8% of corporate jobs in its first major restructuring in years. The retail sector has been particularly battered this year, with Challenger reporting 88,664 job cuts year-to-date—a 145% increase from the 36,136 announced through October 2024. The sector continues to face cost pressures, shifting consumer habits, and ongoing store closures.
Broader market implications of job cuts
The layoff surge extends beyond these headline-grabbing announcements. Other companies cutting corporate jobs include Starbucks, Delta Air Lines, CarMax, Molson Coors Beverage (which cut about 9% of its salaried workforce), Paramount Skydance (1,000 workers), Google (over 100 cloud division design roles), Paycom (over 500 employees), Smartsheet (over 120 employees), and Handshake (around 100 employees).
Cost-cutting was the top reason employers cited for October job reductions, responsible for 50,437 announced layoffs, according to Challenger. Artificial Intelligence was the second-most cited factor, leading to 31,039 job cuts in October alone and 48,414 cuts year-to-date as companies continue to restructure and automate.
The nonprofit sector has been particularly impacted by government funding cuts, announcing plans to eliminate 27,651 jobs this year—a 419% increase from the 5,329 announced by this point in 2024.
Through October, U.S. employers announced just 488,077 planned hires, down 35% from the 750,333 announced at the same point in 2024. This represents the lowest year-to-date hiring total since 2011, when 459,971 new hires were planned. Seasonal hiring plans through October stood at 372,520—the lowest number since Challenger began tracking them 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," Challenger warned.
The mounting job-cut announcements raise concerns about labor market health as the Federal Reserve has lowered its benchmark interest rate twice since September and is expected to approve another quarter-point reduction in December. However, some business leaders remain optimistic about AI's long-term employment impact, with JPMorgan Chase CEO Jamie Dimon suggesting headcount will remain steady or rise as the bank redeploys workers whose jobs are impacted by technology, noting that AI "will also create jobs.