Employers across the nation cut more than 150,000 jobs last month in a 22-year high for October layoffs, according to a report released Thursday.
At least 153,074 job cuts happened in October, marking a 175% increase from the 55,597 job cuts in October 2024, according to Challenger, Gray & Christmas. The latest figure is also up 183% from the 54,064 cuts announced this September, showing a rapid surge in layoffs in a short period of time.
The employment firm that released the new findings attributed the rising trend to employers’ cost-cutting efforts and adoption of artificial intelligence.
“October’s pace of job cutting was much higher than average for the month,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas. “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.”
The total number of October job cuts is the highest since October 2003, when 171,874 cuts were announced. At the time, the onset of cellphones upset the job market in the telecommunications sector.
“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 added, referring to the growing role that AI plays in the workplace today.
Despite the significant loss in jobs, more jobs were created last month for the first time since July.
On Wednesday, ADP reported that private companies added roughly 42,000 employees to their payrolls in October. That number put private-sector employment back on the upswing after back-to-back months of job losses in September and August.
The most recent unemployment rate is 4.3%, the Bureau of Labor Statistics revealed in August.
Recent mass layoffs have occurred at Starbucks, Meta, Amazon, Target, and other corporations. The technology and warehousing industries are among the hardest hit sectors, while layoffs in the government are primarily caused by the weekslong shutdown.
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One company rapidly adopting AI across various facets of its business is Paramount, which laid off over 1,000 workers in a first round of cuts after the entertainment company merged with Skydance and film producer David Ellison took over the media conglomerate.
Paramount is using AI to support the filmmaking process, enhance its advertising and marketing division, and cut costs and streamline operations. To help drive this tech integration, Paramount hired former Meta executive Dane Glasgow as its chief product officer.
