Layoffs have hit the highest level for the month of October since 2003, and hiring has slowed to the lowest point in 14 years as companies look to cut costs and make room for AI integration, according to a new report from Challenger, Gray & Christmas.
The monthly report, published Thursday, lays out a gloomy job market in which U.S.-based employers announced 153,074 job cuts in October. This is up 175% from last October, when 55,597 cuts were announced, and a 183% increase from last month’s 54,064 job cuts announced, the report said.
“October’s pace of job cutting was much higher than average for the month. 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,” said Andy Challenger, chief revenue officer of Challenger. “Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market.”
But as AI adoption disrupts the workforce, the “DOGE impact” remains the leading cause for layoffs this year, according to the report.
This year, through October, employers have announced roughly 1.1 million job cuts, an increase in the first 10 months of last year and year-to-date the highest level through October since 2020, the report said.
