Layoffs surged last month, making it the worst October in 22 years

Layoff announcements across the United States surged in October as artificial intelligence continued to disrupt the labor market.

Companies announced over 153,000 job cuts, according to Challenger, Gray and Christmas, marking a 175% jump from a year earlier and the highest October total since 2003. 

With the latest figures, the total number of jobs lost in the first ten months of 2025 exceeds one million, up 65% year-over-year. The report said the trend mirrors 2003, when another wave of technological disruption reshaped industries.

AI adoption and spending cuts blamed
The firm said the job market is stabilizing after the pandemic boom but warned that AI adoption, slowing consumer and corporate spending, and higher costs are squeezing companies. 

Tech, retail, and media sectors have been hit the hardest, with major employers like Amazon and Target announcing significant workforce reductions.

Shutdown complicates job data
The ongoing government shutdown, now the longest in US history, has halted the release of official labor data, including the monthly jobs report. 

Policymakers now rely on private indicators, such as ADP and Challenger reports. However, Fed Chair Jerome Powell cautioned that such data cannot replace the “gold standard” of government statistics, which are essential for guiding future rate decisions.