U.S. Layoffs Drop in November, Yet 2025 Totals Remain High

Employers in the United States announced significantly fewer layoffs in November compared to October, yet the total number of job cuts for the year remains the highest since 2020. According to a report from Challenger, Gray & Christmas, companies reported 71,321 layoffs in November, a substantial decrease of 53% from the 153,074 layoffs announced in October. Despite this positive monthly trend, the November figures were still 24% higher than the 57,727 cuts recorded in the same month last year, marking the highest level of job cuts for November since 2022.

Year-to-Date Layoff Totals Reach Alarming Levels

Through November, the cumulative total of job cuts for 2025 stands at 1,170,821, reflecting a notable 54% increase from the 761,358 layoffs reported during the first eleven months of 2024. This total is significant as it represents the highest level of job cuts since 2020, when 2,227,725 layoffs were announced during the same period due to the impact of the COVID-19 pandemic. This year marks the sixth instance since 1993 that job cuts have surpassed 1.1 million before December, and it ranks as the fifth highest total for layoffs in that timeframe.

The telecommunications sector was particularly affected in November, with 15,139 layoffs announced, primarily driven by plans from Verizon. This marks the highest monthly total for telecommunications since April 2020, when 16,552 layoffs were reported. The sector has seen a staggering 268% increase in layoffs this year, with a total of 38,035 cuts announced.

Sector-Specific Layoffs Indicate Broader Economic Challenges

The technology sector is also facing challenges, having reported 12,377 layoffs in November, which brings its total for 2025 to 153,536, a 17% increase compared to the previous year. The food industry, particularly companies involved in beef production, announced 6,708 cuts in November, resulting in a total of 34,165 layoffs for the year, a 26% increase from 2024. The services sector accounted for 5,509 layoffs in November, bringing their year-to-date total to 69,089, reflecting a 64% increase from the previous year. Retailers also contributed to the layoffs, announcing 3,290 cuts in November, with a cumulative total of 91,954 layoffs so far this year, which is a surge of 139% from the previous year.

Historically, the trend of announcing layoffs at the end of the year aligns with the fiscal year-end practices of many companies. Nevertheless, this trend has diminished since the Great Recession, as best practices have shifted towards avoiding announcements during the holiday season.

Andy Challenger, chief revenue officer at Challenger, Gray & Christmas, emphasized that the reduction in layoffs for November is a positive sign. However, he also noted that job cuts exceeding 70,000 have occurred only twice since 2008: in 2022 and 2008. The data underscores ongoing challenges within the job market as employers navigate economic fluctuations and restructuring needs across various industries.

As 2025 progresses, the labor market may continue to face volatility, influenced by sector-specific disruptions and broader economic conditions. The significant increase in layoffs across multiple sectors raises concerns about the stability of employment levels and the potential for ongoing challenges in the job market.