2025-11-06 20:14:00
Job cuts across the United States soared to their highest October total in over 20 years, as employers announced 153,074 planned layoffs, according to fresh data from Challenger, Gray & Christmas.
The report, released November 6, highlights accelerating job reductions linked to cost-cutting, the rapid adoption of artificial intelligence, and softening consumer and corporate spending. The surge in layoffs comes amid ongoing economic uncertainty and the record breaking U.S. federal government shutdown.
Key Takeaways
- U.S.-based employers announced 153,074 job cuts in October, a 175% increase year-over-year and 183% jump from September.
- The technology and warehousing sectors led the month’s layoffs, with over 33,000 reductions in tech and nearly 48,000 in warehousing.
- Year-to-date, companies have reported 1,099,500 job cuts, already surpassing the total for full-year 2024 by 44%.
- Leading causes for the October surge include budget constraints, costly AI-driven restructuring, and decelerating business activity.
- The scale of layoffs is the highest for October since 2003, pushing U.S. job market data further into recession-like territory.
Market Reactions
Broad Market Overlay: 5-min
Financial markets showed little patience for the shocking employment update, swiftly adjusting broad risk sentiment as the layoff tsunami crashed onto trading floors. Bonds rallied and stocks slipped, echoing nervous energy as investors peered ahead to a slower hiring environment in the U.S.
Treasury yields and the dollar retreated in tandem, their downward drift likely reflecting traders’ newfound conviction in a possible December Fed rate cut. Unsurprisingly, expectations for easier Fed policy have crept forward with the CME Fedwatch Tool showing the December 10 odds of a cut jumping from 62% yesterday to 69.9% today.
Meanwhile, gold also slipped in the chaos, signaling that bonds were the place to be after the disappointing round of U.S. employment data.
For now, the dollar and yields may continue to see pressure as Asia gets to price in this development in just a few hours. Gold, which didn’t benefit from the initial reaction, may benefit later from growing U.S. economic concerns and the government shutdown situation. Next up is the preliminary U.S. consumer sentiment data from the University of Michigan, which could flip vibes in a heartbeat, or add fuel to the risk aversion fire. Stay tuned and stay frosty!
