Key Takeaways
- U.S. companies announced 153,074 job cuts last month, the most for any October since 2003, according to a new report.
- Cost-cutting and AI were the two main reasons for job reductions.
- Employers eliminated more than a million jobs so far this year, an increase of 65% when compared to the first 10 months of last year.
In October, U.S. companies executed more layoffs than in any other October in 22 years. The surge was driven by the rapid adoption of AI and significant cost-cutting.
According to a report released Thursday from human resources consulting firm Challenger, Gray & Christmas, U.S. companies announced 153,074 job cuts last month, the most for any October since 2003 and almost triple the number during the same month the previous year. October saw the highest number of layoffs for any month in the fourth quarter since 2008.
Layoffs in the technology and warehousing industries drove the high numbers, with the warehousing sector slashing 48,000 roles, while the tech industry eliminated more than 33,000 jobs in October.
United Parcel Service (UPS) contributed to the warehouse layoffs, announcing a total of 48,000 job cuts for the year in late October. About 34,000 eliminations came from operational roles, including drivers and warehouse staff.
Meanwhile, in the tech sector, Amazon laid off 14,000 corporate workers in October, one of the largest job cuts in the company’s corporate history, while Meta eliminated over 600 jobs in its AI and risk divisions.
“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,” Andy Challenger, chief revenue officer for Challenger, Gray & Christmas, said in a statement.
Related: Intel Is Reportedly Cutting 20% of Its Workforce Under a New CEO
In October, cost-cutting was the primary reason employers gave for job reductions, responsible for 50,437 job cuts, per the report. AI was the second most common answer, leading to 31,039 layoffs in October as companies restructured and automated tasks. Market and economic conditions came in third, accounting for 21,104 job cuts for the month.
Amazon CEO Andy Jassy said during Amazon’s quarterly earnings call last week that the company cut jobs to strengthen culture and get rid of excess layers of management, not because of AI or cost-cutting. Amazon aims to operate like “the world’s largest startup,” and the layoffs were meant to reshape its culture, according to Jassy.
Employers have eliminated 1,099,500 jobs so far this year, per the Challenger report. That’s an increase of 65% when compared to the 664,839 cuts announced in the first 10 months of last year, and up 44% from the 761,358 job cuts carried out in all of 2024, per the report.
When it comes to hiring, the report noted that on average, employers have announced 48,808 new hires per month, the lowest monthly average since 2011.
By another measure, the U.S. economy added more jobs than anticipated in October. Payroll processor ADP noted earlier this week that the U.S. added 42,000 private-sector jobs in October, more than expected. The month’s job gains were centered in trade, transportation and utilities, education, health, finance and construction, per ADP.
Key Takeaways
- U.S. companies announced 153,074 job cuts last month, the most for any October since 2003, according to a new report.
- Cost-cutting and AI were the two main reasons for job reductions.
- Employers eliminated more than a million jobs so far this year, an increase of 65% when compared to the first 10 months of last year.
In October, U.S. companies executed more layoffs than in any other October in 22 years. The surge was driven by the rapid adoption of AI and significant cost-cutting.
According to a report released Thursday from human resources consulting firm Challenger, Gray & Christmas, U.S. companies announced 153,074 job cuts last month, the most for any October since 2003 and almost triple the number during the same month the previous year. October saw the highest number of layoffs for any month in the fourth quarter since 2008.
The rest of this article is locked.
Join Entrepreneur+ today for access.
