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October U.S. Layoff Announcements Jump to 153,000 as Companies Lean on AI and Automation

The prolonged government shutdown has left private reports as the main gauge of a labor market increasingly shaped by automation.

Overview

  • Challenger, Gray & Christmas reported more than 153,000 announced job cuts in October, up about 175% from a year earlier and the highest October total since 2003.
  • With official September and October employment releases delayed, analysts are relying on private trackers such as ADP and Challenger despite warnings these are not full substitutes for government data.
  • A report cited 31,039 automation-linked layoffs in October and 48,414 job cuts tied to AI so far this year, underscoring how technology is increasingly named as a cause of reductions.
  • Major firms have announced large 2025 cuts, including Amazon (~30,000, about 10% of staff), Intel (~25,000) and Meta (~600), with some reductions attributed to efficiency gains from AI.
  • Policymakers and experts are urging accelerated reskilling as studies warn many administrative and routine cognitive roles face transformation from AI, even as new technical and care-economy jobs emerge.