A UPS delivery worker and a Starbucks barista.

By Chris Spiker From Daily Voice

The US saw its most job cuts in an October in 22 years, as companies increase automation, the nation's labor market weakens, and the federal government shutdown lingers.

Employers announced 153,074 layoffs in October, Challenger, Gray & Christmas said in a report released on Thursday, Nov. 6. That's the highest total for an October since 2003, when 171,874 cuts were recorded.

The outplacement firm said October's job cuts jumped 183% from September and increased 175% from October 2024. Employers have announced 1,099,500 job cuts so far in 2025, up 65% from the first 10 months of 2024.

Challenger said 2025's layoffs are at their highest level since 2020, when the COVID-19 pandemic shocked the economy and dramatically stunted job growth.

"October's pace of job cutting was much higher than average for the month," said Andy Challenger, workplace expert and chief revenue officer at 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."

Warehousing firms led private-sector cuts with 47,878, followed by technology companies with 33,281. Major corporations announcing layoffs in recent weeks include Amazon, General Motors, NBC News, Nestlé, Ørsted, Paramount Skydance, Starbucks, and UPS. 

Cost-cutting was the top reason cited for layoffs, accounting for more than 50,000 job losses. Artificial intelligence followed with 31,000 in October and more than 48,000 AI-related cuts so far in 2025.

The layoff surge is the latest sign of a cooling job market.

Federal data releases are largely suspended during the longest shutdown in US history, causing hundreds of thousands of workers to miss paychecks. Private payroll firm ADP estimated modest job growth of 42,000 in October, reversing two months of declines. 

The Federal Reserve has cut interest rates twice since September and is expected to lower them again in December as officials monitor slowing employment trends amid stubbornly high inflation.