Companies have increased layoffs and reduced hiring plans
of ConsumerAffairs-
U.S. employers announced 71,321 November job cuts up 24% year over year but sharply lower than Octobers total.
-
Year-to-date layoffs have surpassed 1.17 million, the highest level since 2020.
-
Telecom, tech, food processing, services, and retail sectors drove the months deepest cuts, while hiring plans hit their lowest level since 2010.
U.S. employers announced 71,321 job cuts in November, a 24% increase from the same month last year but a steep 53% drop from Octobers surge, according to a report by outplacement firm Challenger, Gray & Christmas.
Although layoffs eased month to month, November still marked the highest total for the month since 2022 and the eighth month this year in which cuts exceeded the prior years levels.
Layoff plans fell last month, certainly a positive sign, said Andy Challenger, the firms chief revenue officer. That said, job cuts in November have risen above 70,000 only twice since 2008: in 2022 and in 2008.
Historically, November tends to be a quieter month for workforce reductions. From 1993 through 2000, monthly cuts never exceeded 70,000. But during the 2001 recession, November layoffs spiked to more than 181,000 and remained elevated for much of the decade before stabilizing. That trend held until the pandemic restarted an era of volatility.
More than a million jobs lost
Through November 2025, employers have announced 1,170,821 job cuts, a 54% jump from the same period in 2024 and the highest year-to-date total since 2020, when COVID-19 disruptions drove more than 2.2 million cuts. This year becomes just the sixth since 1993 in which job reductions through November topped 1.1 million.
Several major industries reported sharp workforce reductions last month:
-
Telecommunications led the pack with 15,139 cuts, largely tied to restructuring at Verizon. It was the sectors worst month since April 2020.
-
Technology, which continues to dominate private-sector layoff counts, announced 12,377 cuts in November and has shed 153,536 jobs so far this year up 17% from 2024.
-
Food companies, especially those handling beef products, announced 6,708 cuts in November.
-
The Services sector, including cleaning, staffing, and outsourcing firms, recorded 5,509 cuts, more than doubling Octobers total.
-
Retailers cut 3,290 jobs, with year-to-date layoffs up 139% amid weakening consumer demand, tariff uncertainty, and shifting shopping habits.
-
Non-profits continued to suffer from funding reductions and lower donor activity, reporting 28,696 cuts this year a dramatic 409% increase.
-
Media companies have announced 17,163 cuts, up 18%. Cuts within News, however, have fallen by half compared with 2024.
Why companies are cutting
Restructuring was the leading driver of November layoffs, accounting for 20,217 cuts. Store and unit closures followed with 17,140.
Artificial intelligence is playing a growing role in workforce reductions, with 6,280 November cuts attributed to AI adoption and 54,694 so far this year part of 71,683 AI-linked job cuts since the reason first appeared in 2023.
Market and economic conditions accounted for 15,755 November cuts and 245,086 cuts this year. Tariffs were cited for another 7,908, including more than 2,000 in November alone.
The biggest driver of 2025 job cuts remains the federal Department of Government Efficiency (DOGE). While the agency has not been cited in the past two months, its direct workforce reductions and contractor impacts have contributed to 293,753 layoffs this year. An additional 20,976 cuts stemmed from reduced federal funding labeled DOGE Downstream Impact.
Hiring plans at 15-year low
The news isnt any better for people looking for work. Even as layoffs remain high, hiring plans have sharply weakened. Employers have announced 497,151 planned hires through November, down 35% from 2024 and the lowest level since 2010.
Seasonal hiring has also slowed dramatically. Companies have announced 372,520 seasonal positions the smallest total since Challenger began tracking those figures in 2012. The firm found no new seasonal hiring plans in November, though holiday-driven spending spikes could prompt last-minute additions.
The increased spending over Black Friday and the Thanksgiving weekend may give rise to hires in December, Challenger said. Its unclear, however, if those positions will last into the New Year.
Posted: 2025-12-05 12:34:46
