U.S. companies just had their worst October, in terms of job losses, in more than 20 years.
Data from outplacement firm Challenger, Gray & Christmas, Inc., show the most job cuts for any October in more than two decades, placing the blame on things like increased use of AI and cost-cutting measures companies are instituting. The results were reported by Bloomberg.
Companies announced 153,074 job cuts last month, almost triple the number during the same month last year. The cuts, according to the Bloomberg report, were driven by the technology and warehousing sectors. It’s the most for any October since 2003, when the advent of cellphones was similarly disruptive, said Andy Challenger, the company’s chief revenue officer.
“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,” Challenger said in the report. “Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market.”
According to Bloomberg, year-to-date job cuts have exceeded 1 million, the most since the pandemic. In the same period, U.S.-based employers have announced the fewest hiring plans since 2011. Seasonal hiring plans through October are the lowest since Challenger started tracking them in 2012.
“It’s possible with rate cuts and a strong showing in November, companies may make a late season push for employees, but at this point, we do not expect a strong seasonal hiring environment in 2025,” Challenger said in the report.
Several large companies have announed planned cuts recently, including Target, which plans to eliminate 1,800 roles, or about 8% of corporate jobs, in its first major restructuring in years. Amazon.com said it would cut 14,000 corporate jobs — following a warning from its CEO that AI will shrink the company’s workforce — while Paramount Skydance Corp. shed 1,000 workers. Other companies cutting corporate jobs include Starbucks Corp., Delta Air Lines Inc., CarMax Inc., Rivian Automotive Inc. and Molson Coors Beverage Co., which cut about 9% of its salaried workforce, according to Bloomberg.
Payrolls at U.S. companies increased by 42,000 in October after two straight months of declines, signaling some stabilization while consistent with a general softening in labor demand, ADP Research data showed Wednesday.
