Tech layoffs surge to 33,281 in October as AI and economic fears trigger historic job cuts
By isabelle // 2025-11-07
Copy
 
  • U.S. employers announced 153,074 job cuts in October, the highest for that month in more than two decades.
  • The technology sector is experiencing a brutal correction, with more than 33,000 layoffs in October.
  • Corporate cost-cutting, AI adoption, and softening consumer spending are driving the historic downsizing.
  • Laid-off workers are finding it harder to secure new roles, with hiring plans at their lowest since 2011.
  • The retail sector is also under severe pressure, with job cuts up 145% this year.
The American dream is unraveling for hundreds of thousands of workers as a tidal wave of corporate layoffs crashes through the economy. A disappointing new report for October reveals the highest level of job cuts for that month in more than two decades, shattering the illusion of a stable recovery and exposing a labor market in deep distress. The tech sector, once a bastion of high-paying jobs, is leading the charge in this devastating downturn, leaving seasoned professionals struggling to afford basic necessities in an economy that appears to be turning against them. According to the latest data from executive coaching firm Challenger, Gray & Christmas, U.S. employers axed 153,074 jobs in October alone. This represents a staggering 183% increase from September and is the worst October for layoffs since 2003. The total number of job cuts for 2025 has now soared past 1.09 million, reaching its highest level since the pandemic-driven economic shutdowns of 2020.

A tech industry in retreat

The technology industry is experiencing a brutal correction. Tech companies announced 33,281 layoffs in October, a dramatic surge from the 5,639 cuts reported in September. So far this year, the tech sector has announced 141,159 job cuts, a 17% increase from the 120,470 cuts during the same period in 2024. This data confirms that the mass layoffs that began at giants like Microsoft and Amazon in recent years have evolved into a full-blown industry-wide crisis. The drivers behind this historic downsizing are a toxic cocktail of economic pressures and technological disruption. Andy Challenger, the company’s workplace expert and chief revenue officer, explained the confluence of factors in the report. “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,” he said. This sentiment echoes past justifications from corporate leaders, such as Amazon’s Andy Jassy, who previously stated that layoffs would help pursue “long-term opportunities with a stronger cost structure.”

The human cost of business efficiency

The human cost of this corporate “belt-tightening” is immense. The report delivers a chilling finding for those who have lost their jobs: “those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market.” This is a devastating blow to white-collar professionals who once enjoyed high demand for their skills. The report notes that many are now struggling to afford food, gas, and housing, with some former tech recruiters resorting to exhausting retail and catering jobs just to survive. While companies often cite artificial intelligence as a key reason for cuts, some experts question if AI is being used as a convenient scapegoat. Companies explicitly blamed AI for 31,039 of the October layoffs, making it the second-most cited reason after general cost-cutting. Peter Cappelli, a professor of management at the Wharton School, suggested some firms could be “AI-washing” their job cuts. “We spend a lot of time looking carefully at companies that are actually trying to implement AI, and there’s very little evidence that it cuts jobs anywhere near like the level that we’re talking about,” Cappelli noted. The retail sector is also under severe pressure, with 88,664 job cuts so far this year, a 145% increase from 2024. This aligns with the struggles of companies like Target, which is facing a severe shoplifting crisis that its chief financial officer at the time, incoming CEO Michael Fiddelke, said is projected to decrease gross margin by more than $600 million for the entire year. The broader economic landscape is one of weakening consumer spending and rising costs, forcing corporations to shrink their workforces. The pain is not confined to one industry. Major household names are making deep cuts. Amazon recently announced it will eliminate about 14,000 corporate roles. Target is cutting 1,800 corporate jobs in its first major layoff in a decade. UPS is laying off 48,000 workers as it adjusts to lower shipping volumes. This widespread retrenchment signals a fundamental shift in corporate America’s appetite for labor. Making matters worse, hiring plans have slowed to a crawl. Employers have announced just 488,077 planned hires through October, the lowest year-to-date figure since 2011. Seasonal holiday hiring has also cratered, with just 372,520 positions announced so far, the weakest pre-holiday total since Challenger began tracking the data. The opportunities for displaced workers to find new positions are rapidly vanishing. As we head into an uncertain future, the report offers little hope for a quick turnaround. “At this point, we do not expect a strong seasonal hiring environment in 2025,” Challenger concluded. The data paints a clear and unsettling picture: the era of easy opportunity and job security that defined the last decade is over, replaced by a new reality of automation, economic anxiety, and a struggle for survival for the American worker. The corporate pursuit of efficiency has a real and human price, and it is being paid by the hundreds of thousands now cast out of the workforce. Sources for this article include: SFGate.com NYPost.com CNBC.com
Copy