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U.S. October Layoff Announcements Hit 22-Year High, Topping 153,000

A federal data blackout from the shutdown is pushing reliance on private trackers that point to cost-cutting and AI as the main drivers.

Overview

  • Challenger, Gray & Christmas reported 153,074 planned job cuts in October, the highest October total since 2003, bringing 2025 announcements to about 1.1 million, up roughly 65% from a year earlier.
  • Cost-cutting was cited as the top reason for October reductions (about 50,437 planned cuts), with artificial intelligence named second (about 31,039).
  • Layoff plans were concentrated in warehousing (about 47,878) and technology (about 33,281), with retail and services also showing notable reductions.
  • With BLS releases paused by the shutdown, private indicators offered mixed readings: ADP counted a gain of 42,000 private jobs, the Chicago Fed estimated unemployment near 4.36%, and Revelio Labs estimated a net loss of about 9,100 jobs.
  • Fed officials warned private data are no substitute for official statistics as hiring plans weaken heading into the holidays, even after two rate cuts since September.