AI wreaks havoc on US jobs with two-decade high – Business News
US employers axed about 153,000 staff final month — making it the worst October for layoffs in twenty years and bringing complete firings for the yr to this point to over 1 million, in response to a new report that famous many corporations blamed the most recent layoffs on AI.
The final time the US noticed a worse October in phrases of firings was in 2003, when 171,874 people have been laid off.
As within the aughts, the most recent layoff numbers got here amid a time of tech-driven realignment for the economic system. Back then, the problem was adjustments within the telecom industry sparked by the rise of cell telephones, consultants say; at present, it’s the appearance of AI and automating duties as soon as carried out by people.
US employers have slashed more than 1 million jobs this yr and 153,000 jobs in October alone. dpa/AFP by way of Getty Images
Companies cited artificial intelligence in 31,039 of the October layoffs — second solely to common cost-cutting — in response to the report Challenger, Gray & Christmas launched Thursday.
“Like in 2003, a disruptive technology is changing the landscape,” stated Andy Challenger, the firm’s chief income officer.
AI was explicitly blamed for comparatively few of the full job cuts to this point this yr — simply 48,414 of them, in response to the info.
October’s 153,074 job cuts marked a 183% spike from September — when 54,064 positions have been slashed — and a 175% bounce from the identical month a yr in the past, Challenger, Gray & Christmas discovered.
Analysts and companies having been utilizing the firm’s studies, which normally draw little discover, whereas official jobs information has stalled as a result of of the federal government shutdown.
Through the primary 10 months of 2025, introduced layoffs topped 1.09 million — a 65% increase from the 664,839 job cuts final yr and the very best complete since 2020, when pandemic shutdowns despatched pink slips hovering.
At Target, incoming CEO Michael Fiddelke introduced the company’s first main layoffs in a decade, slicing 1,800 company jobs. Stefano Giovannini for NY Post
“Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending and rising costs drive belt-tightening and hiring freezes,” stated Challenger.
The information reveals technology and warehousing corporations led October’s cuts.
Tech companies introduced 33,281 layoffs, up sharply from 5,639 the prior month, whereas warehousing companies axed 47,878 jobs — a surge pushed by automation and lingering overcapacity from pandemic-era growth.
For the yr, the tech industry has slashed 141,159 jobs to this point — up 17% from the 120,470 that have been introduced by means of the identical period in 2024.
Starbucks filed discover to Washington state regulators that it’s going to lay off 974 staff in Seattle and Kent beginning Dec. 5. Getty Images
The retail sector additionally stays beneath stress, with 88,664 job cuts to this point this yr, up 145% from 2024, as chains face weaker discretionary spending and ongoing store closures.
“Over the last decade, companies have shied away from announcing layoffs in the fourth quarter, so it’s surprising to see so many in October,” stated Challenger.
Warehousing, companies, and shopper product companies additionally joined the retrenchment, whereas media and nonprofit organizations reported mounting losses tied to automation and decreased authorities funding.
Challenger stated nonprofits have introduced 27,651 job cuts this yr — up more than 400% — whereas the media industry logged 16,680, a 26% increase.
Overall, corporations cited cost-cutting in 50,437 October layoffs, adopted by artificial intelligence, market circumstances and facility closures.
The 153,074 job cuts from final month marked a 175% bounce from the identical month a yr in the past. Challenger, Gray & Christmas, Inc.
The layoffs appear unlikely to stop anytime quickly.
Amazon, Target, Paramount Skydance and Starbucks have every moved to cut a whole bunch or 1000’s of positions, underscoring the breadth of the company pullback heading into the vacations.
Amazon stated final week it can get rid of about 14,000 company roles, half of a reorganization to “further reduce bureaucracy” and shift sources towards artificial intelligence.
At Target, incoming CEO Michael Fiddelke introduced the company’s first main layoffs in a decade, slicing 1,800 company jobs — roughly 8% of its headquarters workers — because the retailer struggles with a gross sales hunch and goals to “simplify how we work.”
UPS lately introduced it will lay off 48,000 staff as half of a sweeping cost-cutting initiative.
UPS lately introduced it will lay off 48,000 staff as half of a sweeping cost-cutting initiative. Getty Images
In Hollywood, Paramount Skydance started slicing about 2,000 positions, or 10% of its workforce, following its merger approval earlier this yr.
Starbucks filed discover to Washington state regulators that it’s going to lay off 974 staff in Seattle and Kent beginning Dec. 5.
The non-retail layoffs comply with earlier cuts throughout Washington State as CEO Brian Niccol restructures the company after a post-pandemic downturn.
Even as layoffs speed up, hiring plans have slowed dramatically.
Employers have introduced 488,077 deliberate hires by means of October — down 35% from final yr and the bottom year-to-date determine since 2011.
Seasonal hiring has additionally cratered, with simply 372,520 positions introduced to this point, the weakest pre-holiday complete since Challenger started monitoring the determine in 2012.
“At a time when job creation is at its lowest point in years, the optics of announcing layoffs in the fourth quarter are particularly unfavorable,” Challenger stated.
“Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market.”
