US Layoffs for October Surge to Two-Decade High, Challenger Data Shows

• S.-based employers cut more than 150,000 jobs in October, marking the biggest reduction for the month in more than 20 years, a report by Challenger, Gray & Christmas said on Thursday, as industries adopt AI-driven changes 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 said.
• Cost-cutting was the top reason for the layoffs in October, followed by artificial intelligence, while "DOGE Impact" was the leading reason for job cuts in 2025.
• The layoffs in October surged 175% from a year ago to 153,074. From the start of the year to October end, employers have announced 1,099,500 job cuts, a 65% 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 spending, and rising costs drive belt-tightening and hiring freezes," said 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 said, 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.

(Source: Reuters)