October Layoffs Surge to 22-year High as the Job Market Finally Blinks

With input from Axios, Bloomberg, and Reuters.

America’s no-hire, no-fire truce looks like it’s cracking. Employers announced 153,074 layoffs in October, nearly triple September and the most for any October since 2003, according to Challenger, Gray & Christmas. It’s also the heaviest fourth-quarter layoff month since the depths of 2008 — hardly the seasonal headline companies want heading into the holidays.

The drivers aren’t subtle. About a third of cuts were classic belt-tightening as firms chase costs lower, and roughly one in five were tied to AI as automation spreads from pilots to payrolls. Warehousing and tech did the heavy lifting on job losses, reflecting overcapacity, software-driven efficiencies and the rise of AI in back-office and logistics. Nearly 450 companies rolled out cut plans — more than any month this year — which helps explain why people who are let go now are taking longer to land their next role.

“October’s pace of job cutting was much higher than average for the month,” said Andy Challenger, the firm’s chief revenue officer.

Challenger pointed to a post-pandemic “correction” colliding with softer spending and rising costs. The optics don’t help: social media has made year-end layoffs look even harsher, yet this October’s total was roughly three times the decade-long average for the month.

Step back and the trend is unmistakable. Through October, announced cuts have topped about 1.1 million — up 65% from a year ago and the highest comparable tally since 2020. Challenger’s data also flags an unusual 2025 wrinkle: “DOGE” and its ripple effects remain the year’s top layoff rationale overall, accounting for nearly 30% of cuts. However you interpret that label, the result is the same — less hiring, more trimming. Seasonal hiring plans are the thinnest since the firm began tracking them in 2012, and employers have rolled out the fewest overall hiring announcements since 2011.

All of this lands just as official data are sparse during the government shutdown, pushing investors to lean on private reports. ADP did show a modest October payroll gain of 42,000 after two monthly declines — signs of stabilization, not strength. Put together, the picture is a labor market losing altitude: still expanding in places, but wobbling under cost pressure and automation — and now shedding jobs at a clip we haven’t seen for an October in 22 years.