AI wreaks havoc on US jobs with two-decade high 150K cut in October:

AI wreaks havoc on US jobs with two-decade high 150K cut in October:

US employers axed about 153,000 employees last month — making it the worst October for layoffs in 20 years and bringing whole firings for the 12 months to date to over 1 million, according to a new report that famous many corporations blamed the latest layoffs on AI.

The last time the US noticed a worse October in phrases of firings was in 2003, when 171,874 people had been laid off.

As in the aughts, the latest layoff numbers got here amid a time of tech-driven realignment for the financial system. Back then, the issue was modifications in the telecom business sparked by the rise of cell telephones, consultants say; today, it’s the creation of AI and automating duties as soon as completed by people.

US employers have slashed more than 1 million jobs this 12 months and 153,000 jobs in October alone. dpa/AFP through Getty Images

Companies cited artificial intelligence in 31,039 of the October layoffs — second only to normal cost-cutting — according to the report Challenger, Gray & Christmas launched Thursday.

“Like in 2003, a disruptive technology is changing the landscape,” said Andy Challenger, the agency’s chief income officer.

AI was explicitly blamed for comparatively few of the whole job cuts to date this 12 months — just 48,414 of them, according to the data.

October’s 153,074 job cuts marked a 183% spike from September — when 54,064 positions had been slashed — and a 175% soar from the same month a 12 months in the past, Challenger, Gray & Christmas discovered.

Analysts and companies having been utilizing the agency’s experiences, which normally draw little discover, while official jobs data has stalled because of the authorities shutdown.

Through the first 10 months of 2025, announced layoffs topped 1.09 million — a 65% improve from the 664,839 job cuts last 12 months and the highest whole since 2020, when pandemic shutdowns despatched pink slips hovering.

At Target, incoming CEO Michael Fiddelke announced the company’s first major layoffs in a decade, reducing 1,800 company jobs. Stefano Giovannini for NY Post

“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 Challenger.

The data reveals technology and warehousing corporations led October’s cuts.

Tech corporations announced 33,281 layoffs, up sharply from 5,639 the prior month, while warehousing corporations axed 47,878 jobs — a surge pushed by automation and lingering overcapacity from pandemic-era expansion.

For the 12 months, the tech business has slashed 141,159 jobs to date — up 17% from the 120,470 that had been announced by the same interval in 2024.

Starbucks filed discover to Washington state regulators that it’ll lay off 974 staff in Seattle and Kent beginning Dec. 5. Getty Images

The retail sector also stays under strain, with 88,664 job cuts to date this 12 months, up 145% from 2024, as chains face weaker discretionary spending and ongoing retailer closures.

“Over the last decade, companies have shied away from announcing layoffs in the fourth quarter, so it’s surprising to see so many in October,” said Challenger.

Warehousing, companies, and client product corporations also joined the retrenchment, while media and nonprofit organizations reported mounting losses tied to automation and decreased authorities funding.

Challenger said nonprofits have announced 27,651 job cuts this 12 months — up more than 400% — while the media business logged 16,680, a 26% improve.

Overall, corporations cited cost-cutting in 50,437 October layoffs, adopted by artificial intelligence, market circumstances and facility closures.

The 153,074 job cuts from last month marked a 175% soar from the same month a 12 months in the past. Challenger, Gray & Christmas, Inc.

The layoffs appear unlikely to cease anytime soon.

Amazon, Target, Paramount Skydance and Starbucks have each moved to cut a whole bunch or 1000’s of positions, underscoring the breadth of the company pullback heading into the holidays.

Amazon said last week it’ll eradicate about 14,000 company roles, a part of a reorganization to “further reduce bureaucracy” and shift sources towards artificial intelligence.

At Target, incoming CEO Michael Fiddelke announced the company’s first major layoffs in a decade, reducing 1,800 company jobs — roughly 8% of its headquarters workers — as the retailer struggles with a sales droop and goals to “simplify how we work.”

UPS lately announced it could lay off 48,000 employees as a part of a sweeping cost-cutting initiative.

UPS lately announced it could lay off 48,000 employees as a part of a sweeping cost-cutting initiative. Getty Images

In Hollywood, Paramount Skydance started reducing about 2,000 positions, or 10% of its workforce, following its merger approval earlier this 12 months.

Starbucks filed discover to Washington state regulators that it’ll lay off 974 staff in Seattle and Kent beginning Dec. 5.

The non-retail layoffs observe earlier cuts across Washington State as CEO Brian Niccol restructures the company after a post-pandemic downturn.

Even as layoffs speed up, hiring plans have slowed dramatically.

Employers have announced 488,077 deliberate hires by October — down 35% from last 12 months and the lowest year-to-date determine since 2011.

Seasonal hiring has also cratered, with just 372,520 positions announced to date, the weakest pre-holiday whole since Challenger started monitoring the determine in 2012.

“At a time when job creation is at its lowest point in years, the optics of announcing layoffs in the fourth quarter are particularly unfavorable,” Challenger said.

“Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market.”

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