Job layoffs in the US have surged by 47% year-over-year according to a report from Challenger, Gray & Christmas.
Companies in the US cut off 93,816 jobs compared to 63,816 in the previous year.
Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas said: “Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies’ workforces.”
“Companies are spending less, slowing hiring, and sending layoff notices.”
The total number of job layoffs within the first five months of 2025 is 696,309 jobs, which has skyrocketed by 80% compared to the year prior.
In the retail sector, there were 11,483 job layoffs while the service sector laid off 22,492 workers last month.
The main reasons driving the job cuts were market and economic conditions, which accounted for 131,257 job layoffs, while store, division, and factory closings led to 94,439 staff reductions.
Additionally, company restructuring resulted in 62,015 job reductions while bankruptcy filings led to 35,501 layoffs.
However, job conditions are improving with US companies planning to hire 79,741 new employees, which is up 57% from the year prior.
Challenger added: “The current 2025 hiring pace is more aligned with 2012 (50,194 YTD) and 2013 (180,012 YTD) than with the rebound years of 2021–2022, suggesting that, while companies are adding workers, they are doing so cautiously.”
E-commerce giant Amazon recently confirmed layoffs in its books department and Walmart also announced its decision to lay off 1500 employees as it deals with the additional headwinds from tariffs.
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