December 2025 Layoffs Report: 35,553 Job Cuts Cap Record Year of 1.2 Million

December 2025 delivered an unexpected reprieve to close out a brutal year for American workers. According to Challenger Gray & Christmas, U.S. employers announced 35,553 job cuts last month, marking a 50% plunge from November's 71,321 cuts and the lowest monthly total since July 2024.

The December slowdown provides cold comfort, however. The full-year total reached 1,206,374 announced job cuts, a staggering 58% increase from 2024's 761,358 layoffs. This marks the highest annual total since 2020, when pandemic-driven layoffs devastated the labor market. The fourth quarter alone saw 259,948 job cuts, the worst Q4 since 2008.

The Numbers: December's Decline in Context

December's 35,553 layoffs represent a significant shift from the trend that dominated most of 2025:

Month	Job Cuts	vs Prior Month
October 2025	153,074	+183%
November 2025	71,321	-53%
December 2025	35,553	-50%
Q4 Total	259,948	Highest Q4 since 2008

December's decline also represents an 8% decrease from December 2024, when employers announced 38,792 cuts. This year-over-year improvement stands in stark contrast to most of 2025, where monthly figures consistently exceeded their 2024 counterparts.

2025: A Historic Year for Layoffs

The 1,206,374 total job cuts announced in 2025 represent a watershed moment in the American labor market. To understand the scale:

• • 58% increase from 2024: Last year saw 761,358 job cuts, already elevated by historical standards
• • Highest since 2020: Only the pandemic year exceeded 2025's total, when emergency layoffs swept across industries
• • AI-attributed cuts: 54,836 layoffs in 2025 were explicitly linked to artificial intelligence, bringing the total AI-related job cuts since 2023 to 71,825
• • Hiring collapse: Employers announced just 507,647 hiring plans in 2025, down 34% from 2024 and the lowest since 2010

The combination of elevated layoffs and depressed hiring plans created an extraordinarily difficult environment for job seekers throughout 2025.

Quarterly Breakdown: How 2025 Unfolded

Each quarter of 2025 told a distinct story:

Quarter	Job Cuts	Key Driver
Q1 (Jan-Mar)	497,052	Federal government cuts, DOGE impact
Q2 (Apr-Jun)	247,256	Tech restructuring, AI implementation
Q3 (Jul-Sep)	202,118	Summer lull, pharmaceutical and finance cuts
Q4 (Oct-Dec)	259,948	Year-end restructuring, major corporate cuts
Full Year	1,206,374	58% increase from 2024

Q1 2025 dominated the year's total, driven largely by federal government workforce reductions following the creation of the Department of Government Efficiency (DOGE). March alone saw 275,240 layoffs, the highest single month in years, as federal agencies implemented sweeping cuts.

Major Companies That Shaped 2025

Several major corporations drove 2025's layoff totals. Among the most significant:

• • UPS: 48,000 job cuts announced in October as the logistics giant restructured operations
• • Intel: 36,000 positions eliminated as the chip maker fought for survival against Nvidia and AMD
• • Microsoft: 25,300 job cuts while investing $80 billion in AI infrastructure
• • IBM: 16,100 workers cut as AI automated HR and back-office functions
• • Amazon: 14,000 corporate roles eliminated under CEO Andy Jassy's efficiency push
• • Verizon: 13,000 positions cut in telecom's largest 2025 restructuring
• • Meta: 12,200 jobs eliminated as Zuckerberg extended his "year of efficiency"
• • Oracle: 10,000 workers cut in $1.6 billion restructuring for cloud transition

The technology sector remained the primary driver of layoffs, but 2025 saw significant cuts spread to telecommunications, retail, manufacturing, and professional services as AI-driven automation expanded beyond tech.

The AI Factor: 54,836 Jobs Explicitly Replaced

Perhaps the most significant development in 2025's layoff data is the emergence of artificial intelligence as an explicit, trackable cause of job losses. Challenger Gray reported that 54,836 layoffs in 2025 were directly attributed to AI, nearly doubling the approximately 17,000 AI-related cuts from 2023-2024 combined.

This figure almost certainly understates the true impact. Many companies cite "restructuring" or "efficiency" without explicitly mentioning AI, even when automation drives the cuts. The 54,836 represents only those instances where companies publicly acknowledged AI as the reason.

Companies like IBM and Salesforce were unusually transparent about AI replacing workers. IBM's CEO stated directly that AI could handle HR functions previously requiring thousands of employees. Salesforce's Marc Benioff announced that AI agents now handle half of all customer support interactions, eliminating 4,000 support positions.

The Hiring Freeze: Lowest Since 2010

If the layoff numbers paint a concerning picture, the hiring data is equally troubling. Employers announced just 507,647 hiring plans in 2025, representing:

• • 34% decline from 2024: Last year saw 769,953 announced hiring plans
• • Lowest since 2010: The post-Great Recession era saw similarly depressed hiring
• • December bright spot: The 10,496 December hiring plans were the highest for the month since 2022

The combination of elevated layoffs and depressed hiring created a particularly difficult environment for displaced workers. With fewer open positions and more competition for each role, job searches in 2025 took significantly longer than in previous years.

December's Positive Sign

While the annual picture is sobering, December's numbers offer reasons for cautious optimism as we enter 2026:

• • Sharp decline in cuts: The 50% month-over-month drop suggests companies may have completed major restructuring
• • Year-over-year improvement: December 2025's 35,553 cuts were 8% below December 2024
• • Hiring uptick: December's 10,496 hiring plans represent renewed employer confidence
• • Stable unemployment: Despite record layoffs, unemployment remained at 4.4%, suggesting workers found new positions

The question now is whether December's improvement signals a turning point or merely a holiday-season pause before renewed cuts in 2026.

Looking Ahead: What 2026 May Bring

Several factors will shape the 2026 employment landscape:

January traditionally sees elevated layoffs as companies implement new-year restructuring plans. Many organizations delay announcements until after the holidays, meaning January 2026 could see a temporary spike before normalizing.

AI implementation will accelerate. Companies that successfully deployed AI in 2025 will expand these systems. Those that delayed will face pressure to catch up. Either path likely means continued workforce displacement in roles that AI can automate.

Economic uncertainty persists. While recession fears have moderated, elevated interest rates, potential policy changes under the new administration, and global economic pressures create an unpredictable environment for hiring decisions.

The hiring-layoff disconnect may narrow. December's improved hiring numbers suggest companies may be ready to rebuild in strategic areas, even as they continue cutting in others. This "simultaneous hire and fire" dynamic could define 2026.

What This Means for Workers

For the 1.2 million workers who received layoff notices in 2025, and for those concerned about 2026, several strategies emerge:

• • Embrace AI tools: Workers who can work alongside AI systems are more valuable than those whose work AI can replace
• • Build financial reserves: Extended job searches in 2025 underscore the importance of 6-12 month emergency funds
• • Network continuously: Personal connections remain the most effective path to new opportunities in a competitive market
• • Consider growth sectors: Healthcare, renewable energy, and AI-adjacent roles continue adding jobs even as other sectors cut

Conclusion

December 2025's 35,553 job cuts provided a much-needed breather after a year that saw 1,206,374 Americans receive layoff notices. The 50% month-over-month decline and improved hiring numbers offer hope that the worst may be behind us.

But the scale of 2025's layoffs cannot be understated. The highest annual total since 2020, combined with the lowest hiring since 2010, created unprecedented challenges for American workers. AI-attributed layoffs nearly doubled, signaling a structural shift in how companies approach workforce planning.

As we enter 2026, the data suggests a labor market in transition rather than crisis. December's numbers hint at stabilization, but January will reveal whether companies delayed cuts or genuinely reduced their restructuring plans. For workers, the message is clear: adapt to the AI-transformed workplace, maintain financial resilience, and stay ready for opportunity in an uncertain environment.