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Announced job cuts by U.S. employers have exceeded 1.1 million this year, reaching the highest level since the 2020 pandemic, according to a report released Thursday (December 4) by consulting firm Challenger, Gray & Christmas. In November alone, 71,321 job cuts were announced, marking a decrease from October's massive layoffs but still contributing to the 2025 total of 1.17 million. This figure is 54% higher than the same period last year and is the sixth time since 1993 that job cuts through November have surpassed 1.1 million.
The report highlights that technology, telecommunications, and food companies were among the hardest-hit industries. Verizon, a major telecom firm, announced plans to cut 13,000 jobs in November. The technology sector alone announced 12,377 job cuts last month, bringing its total for the year to 153,536.
Artificial intelligence, corporate restructuring, and tariffs were significant factors driving the layoffs. AI was cited as a reason for 6,280 job cuts in November, with 54,694 layoffs attributed to AI so far this year. Market and economic conditions accounted for 15,755 job cuts in November.
Despite the high number of layoffs, the report also notes a decrease in planned hires. U.S. employers announced 497,151 planned hires through November, down 35% from the previous year, marking the lowest year-to-date total since 2010.
The Challenger report comes amid a data void caused by a government shutdown, making it a crucial data point for markets and policymakers. The Bureau of Labor Statistics’ next employment report is scheduled for release on December 16.