December Layoffs Fell 50%

U.S.-based employers announced 35,553 job cuts in December, down 50% from the 71,321 job cuts announced in November, and down 8% from the 38,792 job cuts announced in the same month last year, according to a report released from Challenger, Gray & Christmas.

“The year closed with the fewest announced layoff plans all year. While December is typically slow, this coupled with higher hiring plans, is a positive sign after a year of high job cutting plans,” says Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.

Key takeaways:

·        December’s total is the lowest monthly total since 25,885 cuts were announced in July 2024, and the lowest December total since 2023, when 34,817 cuts were announced. It is the fourth time this year job cuts were lower than the corresponding month one year earlier.

·        In 2025, employers announced 1,206,374 job cuts, an increase of 58% from the 761,358 announced in 2024. Annual job cuts are at the highest level since 2020 when 2,304,755 cuts were announced. It is the seventh highest annual total since 1989.

·        Technology led in private-sector job cuts with 154,445 in 2025, including 909 in December, an increase of 15% from 133,988 job cuts in this sector in 2024.

·        Companies in warehousing announced 95,317 job cuts in 2025 as that industry grapples with supply chain, shifting consumer behavior, and automation. Job cuts in this sector are up 317% from the 22,874 announced in 2024.

·        Similarly, retail companies contended with shifting consumers, higher prices, tariff uncertainty and consumer spending. In 2025, this industry announced 92,989 job cuts, up 123% from the 41,686 cuts announced in 2024.

·        In December, store, unit, or department closing led all reasons for cuts, with 12,949 and 191,480 for the year. Market and economic conditions followed with 8,120 cuts announced during the month, bringing the 2025 total to 253,206. Restructuring accounted for 5,356 job cuts in December, bringing its 2025 total to 133,611.

·        Artificial intelligence (AI) was cited for 142 job cuts in December. So far this year, AI has been responsible for 54,836 announced layoff plans. Since 2023, when this reason was first tracked, AI has been cited in 71,825 job cut announcements.

·        Tariffs were cited for 7,908 job cuts in 2025, though no tariff-related cuts were announced in December.

·        DOGE Actions was the leading reason for job cut announcements in 2025, responsible for 293,753 planned layoffs. This includes direct reductions to the federal workforce and its contractors. An additional 20,976 cuts have been attributed to DOGE Downstream Impact, reflecting the loss of federal funding to private and nonprofit entities.

·        In December, employers announced 10,496 hiring plans, the highest total for the month since 2022 when 51,693 December hiring plans were announced. It is up 16% from the 9,074 hiring plans announced in November. It is up 31% from the 7,999 hiring plans announced in December 2024.

·        Last year, U.S. employers announced 507,647 planned hires, down 34% from the 769,953 announced in 2024. It is the lowest year-to-date total since 2010, when 402,608 new hires were planned that year.