Layoffs Soar To Highest Level Since COVID-19 Began, New Data Says: Here's Why

By Chris Spiker From Daily Voice

Layoffs are surging at a pace not seen since the beginning of the COVID-19 pandemic, adding new pressure to an economy already showing signs of strain before the holidays.

Employers cut 1,170,821 jobs in the first 11 months of 2025, according to a report from outplacement firm Challenger, Gray & Christmas released on Thursday, Dec. 4. That's the highest level since 2020, when companies slashed 2.2 million positions at the pandemic's peak.

2025's job cuts through November marked a 54% jump from the same period in 2024. It is only the sixth time since 1993 that layoffs through November have passed 1.1 million.

While November's 71,321 cuts were down sharply from October's spike, the monthly data was still 24% higher than November 2024.

"Layoff plans fell last month, certainly a positive sign," said workplace expert Andy Challenger. "That said, job cuts in November have risen above 70,000 only twice since 2008: in 2022 and in 2008."

The rising job cuts come as businesses respond to uncertain economic conditions caused by President Donald Trump's widespread tariffs and plunging consumer sentiment amid stubbornly high inflation. Challenger found that 245,086 job cuts in 2025 were blamed on market and economic conditions, including 7,908 reductions directly linked to Trump's tariffs.

Workers sitting around a conference room table.

Unsplash - Christina @ wocintechchat.com

November was also 2025's eighth month when layoffs outpaced 2024 levels. Technology remains the private-sector industry with the most job cuts, with 153,536 announced so far in 2025.

Experts say that artificial intelligence and automation tools are fueling hundreds of thousands of layoffs across sectors. Challenger found that AI has been responsible for at least 54,694 job cuts in 2025.

Telecom saw a dramatic surge with 15,139 layoffs in November, the industry's highest since 2020. The vast majority of those reductions come from Verizon, which announced up to 15,000 job cuts.

Challenger's findings mirror a new report from ADP, which found that 32,000 private jobs were slashed nationwide in November. The Northeast led the decline with about 100,000 cuts, including 50,000 in New England and 49,000 in the mid-Atlantic.

Hiring also remains down amid the weakened labor market. According to Challenger, employers announced 497,151 new positions through November, down 35% from 2024 and the lowest level since 2010.

Seasonal hiring also reached its lowest point since Challenger began tracking in 2012.

"The increased spending over the Black Friday and the Thanksgiving weekend may give rise to hires in December right before the holiday," Challenger said. "It's unclear, however, if those positions will last into the New Year."

Other industries with the largest 2025 layoffs include retail (91,954), business services (69,089), food (34,165), and nonprofits (28,696).