US Layoffs Hit 20-Year High in October 2025: AI and Cost-Cutting Drive Job Cuts Across Major Firms
US layoffs hit a 20-year high in October 2025 with 153,000 jobs lost amid AI expansion and corporate restructuring. Amazon, UPS, Intel, and Target led the job cuts, signaling deeper concerns for the American labor market.
US layoffs hit a two-decade high in October 2025 as AI adoption and cost-cutting led to massive job losses across tech, retail, and logistics sectors.
The United States saw its worst wave of layoffs in more than two decades this October, with 153,074 jobs cut amid widespread cost-cutting, automation, and artificial intelligence (AI) adoption across industries. The figure, reported by Challenger, Gray & Christmas, marks a 183% jump from September and a 175% increase from the same period last year — highlighting mounting strain in the labor market.
Year-to-date, companies have announced 1.09 million job cuts, the highest total since 2020, when the pandemic upended global employment.
“Like in 2003, a disruptive technology is changing the landscape,” said Andy Challenger, Chief Revenue Officer at Challenger, Gray & Christmas. “Job creation is at its lowest in years, and many laid-off workers are finding it harder to secure new roles.”
🔹 Why the Sudden Spike in Layoffs?
Experts attribute the surge to a combination of factors — rapid AI integration, slowing consumer demand, high costs, and pandemic-era overhiring corrections. Tech, logistics, and retail sectors bore the brunt, with companies restructuring to boost efficiency and profitability.
🏢 Top 10 Companies That Announced Major Layoffs in October 2025
1. Amazon – Up to 30,000 Job Cuts
Amazon initiated its largest-ever corporate layoff drive, cutting 14,000 roles with reports suggesting the number could reach 30,000. The move targets middle management as part of CEO Andy Jassy’s cost-efficiency push. The company cited AI-driven automation and internal restructuring as key factors.
2. UPS – 48,000 Workers Laid Off
United Parcel Service (UPS) announced a massive 48,000-employee reduction, aligning with its plans to scale back Amazon deliveries and increase automation. The logistics major said the layoffs span both operational and managerial levels.
3. Intel – 20,000 Job Cuts
Chipmaker Intel confirmed 20,000 layoffs under a restructuring led by CEO Lip Bu Tan. The company is attempting to regain competitiveness in the semiconductor sector after manufacturing setbacks and global chip demand shifts.
4. Microsoft – 6,000 Employees Affected
Microsoft trimmed about 3% of its global workforce, with 6,000 positions eliminated. The layoffs impacted multiple divisions, including LinkedIn and AI development teams. The move follows broader cost reductions across the tech industry.
5. Salesforce – 4,000 Customer Support Jobs Cut
Cloud software leader Salesforce slashed 4,000 roles, primarily in customer support. CEO Marc Benioff attributed the decision to AI adoption reducing workforce needs, noting that automation now handles tasks once done manually.
6. Meta – 600 AI Division Employees Let Go
Meta Platforms trimmed 600 jobs from its Meta Superintelligence Labs, citing overlapping AI research projects. The company also reduced staff in its risk review team but retained key talent working on “personal superintelligence.”
7. Applied Materials – 1,400 Jobs Cut
Semiconductor equipment giant Applied Materials cut 1,400 positions (around 4% of its workforce) amid U.S. export restrictions and declining global chip demand.
8. Chegg – 388 Employees Impacted by AI Shift
Online education platform Chegg laid off 45% of its workforce (388 employees), blaming AI-powered tools like ChatGPT for cutting into traffic and revenue. The company said it’s restructuring to focus on new AI-based learning solutions.
9. Rivian – 600 EV Jobs Cut
Electric vehicle startup Rivian announced its third layoff round in 2025, cutting 600 jobs (4% of staff) amid an EV market slowdown. The reductions target commercial and manufacturing teams.
10. Target – 1,800 Corporate Roles Eliminated
Retail giant Target eliminated 1,800 corporate positions, around 8% of its office workforce, in its first major restructuring in years. Retail job cuts this year have surged 145% compared to 2024.
⚙️ Other Firms Hit by Layoffs
Additional layoffs were reported at Starbucks, Delta Air Lines, CarMax, Molson Coors, Paramount Skydance, Google, Paycom, Smartsheet, and Handshake — with cost-cutting and AI integration cited as leading reasons.
📉 What the Data Shows
Cost-cutting accounted for 50,437 layoffs in October.
AI adoption was the second-biggest cause, with 31,039 job losses in October alone.
The nonprofit sector saw a 419% rise in layoffs due to funding cuts.
Hiring plans for 2025 dropped 35% year-on-year, marking the lowest level since 2011.
💬 The Bigger Picture
Even with the negative figures, a few analysts are still hopeful to a certain extent. The Fed has decreased interest rates twice already, and another cut is anticipated in December. At the same time, Jamie Dimon, the CEO of JPMorgan, thinks that AI will open up new avenues, and he stated, “AI will also create jobs, even as it changes the nature of some existing ones.”
