Layoffs announced by U.S. employers slowed sharply in November, but companies showed little appetite to add workers, underscoring a labor market that remains stuck in caution mode as firms confront soft demand, tariff pressures, and rising operating costs.
Global outplacement and executive coaching firm Challenger, Gray & Christmas said Thursday that planned cuts fell 53% from October to 71,321, a significant pullback from the prior month’s spike. Still, November's total came in 24% higher than a year earlier, marking the biggest November tally since 2022.
“Layoff plans fell last month, certainly a positive sign. That said, job cuts in November have risen above 70,000 only twice since 2008: in 2022 and in 2008,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.
2025 Layoffs Outpace Hiring By Wide Margin
Through the first 11 months of 2025, companies have announced 1.171 million layoffs, up 54% from the same period last year, and at the highest level since pandemic-induced layoffs in 2020.
Hiring plans tell a different story: employers outlined just 497,151 intended additions, the weakest year-to-date figure since 2010, and down 35% from 2024.
“The increased spending over the Black Friday and the Thanksgiving weekend may give rise to hires in December right before the holiday. It's unclear, however, if those positions will last into the New Year,” Challenger said.
The imbalance highlights a workforce landscape where employers are trimming headcount selectively but not rushing to replace or expand.
Why Employers Are Hesitant
Restructuring remained the top reason for November job cuts, followed by business closures and demand-related reductions. Companies also pointed to tariffs and broader economic uncertainty, which have squeezed margins and clouded forecasts, particularly for smaller firms.
Artificial intelligence (AI) continues to influence staffing choices, though at a modest scale. AI was cited in 6,280 November cuts and 54,694 for the year.
Telecom companies, led by Verizon (NYSE:VZ), announced the most layoffs last month, with technology firms and meat processors close behind. More broadly, technology firms continue to lead private-sector job cuts, announcing 153,536 job cuts so far this year, which is up 17% from the 130,701 announced through November 2024.
Despite the volume of announced cuts, unemployment claims have not surged, suggesting employers are holding positions vacant rather than firing aggressively and reinforcing what economists describe as a “no-fire, no-hire” labor market.
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