- US companies have announced over 946,000 job cuts through Q3 2025, the highest year-to-date total since 2020 and fifth-highest since 1989.
- A drop in job openings and elevated unemployment among college grads indicate a more difficult hiring environment.
- Government, tech, and retail sectors lead in job cuts, with retail layoffs more than tripling since 2024.
- Persistent inflation and a weaker job market may pressure the Fed toward future rate cuts.
A Labor Market Shift in Motion
According to Globe St, a new wave of job cuts is sweeping across US industries, with nearly a million jobs slashed through the first nine months of 2025, according to Challenger, Gray & Christmas. It’s the highest January–September layoff total since the height of the pandemic in 2020, and it marks a possible turning point in what had been a historically stable labor market.
Widespread Cuts Across Industries
Government agencies lead the tally with nearly 300,000 planned cuts so far this year, followed by technology firms, which have announced nearly 108,000 layoffs. While tech cuts have slowed from last year’s pace, retail layoffs surged over 200% to more than 86,000. Media companies also saw a modest rise in job losses.
Recent high-profile layoffs include:
- Amazon: 14,000
- Target: 1,800
- Starbucks: 900
- Paramount: 1,000
- Molson Coors: 400
These announcements come amid a broader economic slowdown and a partial federal government shutdown, which has halted key employment data from agencies like the Bureau of Labor Statistics.
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Hiring Freezes Compound the Problem
While layoffs dominate headlines, the job market is also suffering from a lack of new hiring. The number of open positions has fallen sharply since 2021, leaving many — especially recent graduates — without viable employment opportunities. Unemployment among college grads hit 9.3% in August, compared to the national average of 4.3%.
“We’re not just in a low hire, low fire environment anymore,” Allianz Trade senior economist Dan North said. “We’re firing.”
What Comes Next
The dual threat of job cuts and sluggish hiring could increase pressure on the Federal Reserve to consider rate cuts, but inflation remains a complicating factor. With corporate belt-tightening on the rise and consumer confidence starting to wobble, economists warn that the next phase of the labor market may look very different from the post-pandemic rebound.
For now, all signs point to the end of an unusually stable employment era — and the start of something more uncertain.
