November Layoffs Rose 24% Year Over Year as Job Cuts Hit Their Highest Level Since 2020 — and AI Isn't the Main Culprit

Layoff announcements from U.S. employers climbed 24% in November compared with the same month last year, even as they fell sharply from October's spike, according to new data from Challenger, Gray & Christmas. Employers announced 71,321 job cuts in November, down 53% from October's 153,074 but the highest November total since 2022.

The surge in reductions this year has been striking: through November, companies have announced 1,170,821 layoffs, up 54% from the first eleven months of 2024 and the highest year-to-date level since the pandemic year of 2020. It is only the sixth time since 1993 that job cuts through November have topped 1.1 million.

Despite the spike in announced layoffs, it has not translated into a surge in weekly unemployment claims, leaving the labor market in what economists describe as a "no fire, no hire" equilibrium. The stagnation has been attributed to a combination of reduced labor supply—linked in part to slower immigration under the Biden and Trump administrations—and a hiring pullback as businesses face tariff uncertainty, cooling demand, and rising costs.

Telecommunications companies led the November announcements with 15,139 planned cuts, driven largely by Verizon—marking the highest monthly total for the sector since April 2020. The sector has announced 38,035 cuts so far this year, up 268% from the same period in 2024.

Technology companies followed with 12,377 job cuts in November, bringing the year-to-date total to 153,536, a 17% annual increase. Food companies, particularly those processing beef products, announced 6,708 layoffs in November and 34,165 year to date, up 26%.

Retailers have cut 91,954 jobs this year—more than double last year's level—as companies adjust to softening demand, new tariffs, and shifting consumer preferences. Non-profits have been hit especially hard by federal funding reductions, announcing 28,696 cuts so far, a 409% jump from last year.

Restructuring remained the top reason for layoffs in November, accounting for 20,217 cuts. Store or unit closures were the second-largest driver.

Artificial intelligence—despite intense media focus—remains a relatively small factor. AI was cited for 6,280 November cuts, and 54,694 so far this year. Since Challenger began tracking this reason in 2023, AI-related cuts total 71,683, far below reductions driven by macroeconomic forces or government spending changes.

Market and economic conditions were cited for 15,755 November layoffs and 245,086 cuts so far this year. Tariffs—central to President Trump's trade agenda—have contributed to 7,908 job cuts in 2025, including 2,061 in November.

Meanwhile, the Department of Government Efficiency (DOGE) remains the single largest driver of job reductions, responsible for 293,753 layoffs so far this year, plus an additional 20,976 tied to downstream funding cuts.

Planned hiring remains historically weak. Employers have announced 497,151 new hires through November, down 35% from last year and the lowest year-to-date total since 2010. Seasonal hiring has also slowed sharply: just 372,520 positions were announced, the lowest since Challenger began tracking in 2012, with no new seasonal announcements in November.

"The increased spending over the Black Friday and the Thanksgiving weekend may give rise to hires in December right before the holiday. It's unclear, however, if those positions will last into the New Year," said Challenger.