US companies announced the most job cuts for any October in more than two decades as artificial intelligence reshapes industries and cost-cutting accelerates, according to data from outplacement firm Challenger, Gray & Christmas.
Companies announced 153,074 job cuts last month, almost triple the number during the same month last year and 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 labour market."
The numbers are weak no matter how they're spliced. Year-to-date job cuts have exceeded 1 million, the most since the pandemic. In the same period, US-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," said Challenger.
In recent weeks, Target announced plans to eliminate 1,800 roles, or about 8% of corporate jobs in its first major restructuring in years. Amazon.com Inc. said it would slash 14,000 corporate jobs - following a warning from its CEO that AI will shrink the company's workforce-while Paramount Skydance axed 1,000 workers. Others include Starbucks, Delta Air Lines, CarMax, Rivian Automotive and Molson Coors Beverage, which cut about 9% of its salaried workforce.
Mounting job-cut announcements risk fueling concerns about the health of the labour market just as newly unemployed Americans are facing a diminished hiring environment.
Companies announced 153,074 job cuts last month, almost triple the number during the same month last year and 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 labour market."
The numbers are weak no matter how they're spliced. Year-to-date job cuts have exceeded 1 million, the most since the pandemic. In the same period, US-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," said Challenger.
In recent weeks, Target announced plans to eliminate 1,800 roles, or about 8% of corporate jobs in its first major restructuring in years. Amazon.com Inc. said it would slash 14,000 corporate jobs - following a warning from its CEO that AI will shrink the company's workforce-while Paramount Skydance axed 1,000 workers. Others include Starbucks, Delta Air Lines, CarMax, Rivian Automotive and Molson Coors Beverage, which cut about 9% of its salaried workforce.
Mounting job-cut announcements risk fueling concerns about the health of the labour market just as newly unemployed Americans are facing a diminished hiring environment.
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