US job cuts hit two-decade high in October

US companies announced the most job cuts for October in more than two decades as artificial intelligence (AI) reshapes industries and cost-cutting accelerates, according to data from outplacement firm Challenger, Gray & Christmas Inc.

Companies last month announced 153,074 job cuts, nearly triple the number during the same month last year and driven by the technology and warehousing sectors. It was the most for any October since 2003, when the advent of cellphones was similarly disruptive, said Andy Challenger, the company’s chief revenue officer.

Compared to the same month last year, total layoffs are up 175%, according to the report.

Since the beginning of this year, total announced layoffs in the US have reached 1.099 million, the highest level since 2020, when companies announced layoffs of 2.3 million employees in the first ten months.

The technology sector continues to lead the list of private-sector job cuts, as companies increasingly rely on artificial intelligence. It announced layoffs of 33,280 employees in October and approximately 141,160 since the beginning of the year.

In contrast, total hiring plans have reached approximately 488,700 jobs since the beginning of 2025, a 35% year-on-year decrease and the lowest level since 2011.