Layoffs in 2025 Highest Since 2020
Outplacement firm Challenger, Gray & Christmas reports U.S. employers announced nearly 950,000 job cuts through September 2025 — the largest cumulative layoff total since the pandemic year of 2020 — and warns cuts could top 1 million for the year. The trend accompanies a stalling labor market: companies now expect to hire 58% fewer workers for the rest of 2025 versus a year ago, ADP reported a 32,000 decline in private payrolls in September, and OMB has told federal agencies to prepare for possible layoffs amid the government shutdown.
Economy
Labor
🔍 Key Facts
- Nearly 950,000 jobs were cut in the U.S. through September 2025, per Challenger, Gray & Christmas
- Challenger forecasts layoffs could exceed 1 million for all of 2025; September saw ~54,000 announced cuts (37% below August)
- ADP reported private‑sector payrolls fell by 32,000 in September; Fed and economists are watching for broader labor weakness
📍 Contextual Background
- OMB is the abbreviation for the Office of Management and Budget, an office within the executive branch of the United States federal government responsible for assisting the President in preparing the federal budget and supervising its administration in executive agencies.