June 2025 Layoffs Report: 48,000 Job Cuts Mark Q2 as Highest Since 2020

U.S. employers announced 47,999 job cuts in June 2025, according to Challenger, Gray & Christmas, representing a 49% decline from May's 93,816 layoffs and marking the second consecutive month of moderation from Q1's extraordinary peaks. However, June's seemingly positive decline masks a critical reality: the second quarter of 2025 recorded 247,256 total layoffs, the highest Q2 total since pandemic-era 2020, bringing year-to-date 2025 layoffs to 744,308, the highest mid-year total since 2020 and representing an 80% surge compared to the same period in 2024.

June's 47,999 announced layoffs occurred alongside our June 2025 Jobs Report (data pending) showing continued labor market dynamics. While June represents the lowest monthly total since January's 49,795, the 47,999 figure remains essentially flat compared to June 2024's 48,786 (down just 2%), indicating that while crisis-level mega-layoffs have moderated, the labor market has stabilized at historically elevated layoff rates rather than returning to pre-2025 norms.

This June report marks a critical inflection point: the first half of 2025 concludes with 744,308 announced layoffs, positioning the year on track for 1.49 million full-year cuts if current pace continues. The government sector dominated year-to-date figures with 288,628 cuts (39% of total), retail surged 255% to 79,865 cuts, technology climbed 27% to 76,214 cuts, and non-profit organizations exploded 407% to 16,930 cuts as federal budget reductions cascaded through the sector. For workers across industries, June's moderation provides little relief as the sustained elevated baseline signals structural transformation rather than temporary crisis.

The Big Picture: June Layoffs and Q2 Summary

Challenger, Gray & Christmas reported June and second quarter layoff activity:

• June Total Layoffs: 47,999 job cuts
• Month-over-Month: -49% from May 2025 (93,816 cuts)
• Year-over-Year: -2% from June 2024 (48,786 cuts)
• Historical Context: Lowest monthly total since January 2025 (49,795)
• Q2 2025 Total: 247,256 layoffs (April + May + June)
• Q2 Historical Context: Highest Q2 total since 2020 pandemic
• Q2 Year-over-Year: +39% vs. Q2 2024
• Year-to-Date (Jan-June): 744,308 total layoffs
• YTD Year-over-Year: +80% vs. same period 2024
• YTD Historical Context: Highest mid-year total since 2020

Context: First Half 2025 Complete Picture

The 47,999 June layoffs complete the first half of 2025:

• H1 2025 Total: 744,308 announced layoffs
• H1 2024 Total: ~413,000 announced layoffs
• H1 Increase: +80% year-over-year
• Monthly Average (Jan-June): 124,051 layoffs per month
• Q1 vs. Q2: Q1 497,052 (extreme) vs. Q2 247,256 (elevated)
• Full-Year Pace: On track for 1.49 million if H2 matches H1 pace

June's 47,999 represents the "new normal" baseline as crisis-driven spikes (March's 275,240, April's Intel-led 105,441) give way to sustained elevated restructuring. The 2% decline vs. June 2024 signals market stabilizing at approximately double pre-2025 historical norms (typical June ~30-35k) rather than returning to traditional levels. See our analytics dashboard for detailed quarterly and sector trends.

Q2 2025: Highest Quarter Since 2020 Pandemic

While June moderated significantly, the second quarter's 247,256 total layoffs mark the highest Q2 on record since pandemic-era 2020:

Q2 2025 Breakdown:

• April: 105,441 (Intel 21,000 tech surge)
• May: 93,816 (broad restructuring)
• June: 47,999 (moderation)
• Q2 Total: 247,256
• Q2 2024 Total: ~178,000
• Q2 Increase: +39% year-over-year

Q1 vs. Q2 Comparison:

Metric	Q1 2025	Q2 2025	Change
Total Layoffs	497,052	247,256	-50%
Monthly Average	165,684/month	82,419/month	-50%
Peak Month	March (275,240)	April (105,441)	-62%
Dominant Driver	Government DOGE	Broad sectors	Shift
Government Cuts	~279,000 (56%)	~35,000 (14%)	-87%

The comparison reveals Q2's "moderation" actually represents normalization from Q1's extraordinary government-driven crisis to sustained elevated restructuring across all sectors. Q2's 82,419 monthly average still runs approximately 2x pre-2025 historical norms (typical 40-50k/month), indicating the labor market has settled at a new, higher baseline rather than returning to previous stability.

Year-to-Date 2025: 744,308 Layoffs (Highest Since 2020)

June concludes the first half of 2025 with historic year-to-date totals:

• Total YTD Layoffs: 744,308 announced cuts (Jan-June)
• Year-over-Year: +80% compared to Jan-June 2024 (~413,000)
• Historical Context: Highest mid-year total since pandemic-era 2020
• Monthly Average: 124,051 layoffs per month
• Full-Year Projection: On pace for 1.49 million if H2 matches H1
• Comparison to Crises: Approaching 2020 pandemic (1.9M) and 2009 recession (1.7M) levels

Sector Breakdown (Jan-June 2025):

Sector	YTD Cuts	% of Total	YoY Change
Government	288,628	39%	Unprecedented
Retail	79,865	11%	+255%
Technology	76,214	10%	+27%
Non-Profit	16,930	2%	+407%
Other Sectors	282,671	38%	Varies

Government cuts representing 39% of all YTD layoffs reflects unprecedented federal workforce reduction under DOGE initiative. The retail sector's 255% surge indicates fundamental sector disruption far beyond typical restructuring. Technology's 27% increase, while smaller percentagewise, represents sustained pressure on high-wage jobs. Non-profit's 407% explosion directly links to federal budget cuts cascading through organizations dependent on government funding.

Government Sector: 288,628 YTD, Moderation in June

June saw government sector cuts moderate to 3,801 (up 46% from May's 2,600 but dramatically lower than Q1 peaks), bringing year-to-date government layoffs to 288,628, representing 39% of all 2025 cuts.

Key Details:

• June Government Cuts: 3,801
• Month-over-Month: +46% from May's 2,600
• YTD Government Cuts: 288,628 (39% of 744,308 total)
• Q1 Government: ~279,000 (DOGE Phases 1-2)
• Q2 Government: ~35,000 (DOGE Phase 3, stabilization)
• Initiative: DOGE entering maintenance phase

Government Cuts Timeline:

• January: Minimal (baseline)
• February: 62,242 (DOGE Phase 1 launch)
• March: 216,670 (DOGE Phase 2 peak, historic month)
• April: ~25,000 (IRS 20k, USDA 5.6k, moderation begins)
• May: 10,000 (HHS restructuring)
• June: 3,801 (continued moderation)

The 288,628 year-to-date federal cuts represent approximately 12% of the 2.4 million civilian federal workforce, marking the most significant peacetime federal workforce reduction in U.S. history. June's 3,801 cuts (down from March's 216,670 peak) suggest DOGE initiative entering maintenance phase where major restructuring phases have completed and remaining cuts represent ongoing optimization rather than wholesale agency elimination.

For federal employees, June offers relative stability compared to Q1's chaos, though cumulative 12% workforce reduction creates ongoing operational strain, workload increases for remaining staff, and continued uncertainty about whether additional restructuring waves may occur in H2 2025.

Retail Sector: 79,865 YTD (+255%), Structural Collapse

Retail sector's 79,865 year-to-date cuts represent a staggering 255% increase compared to the same period in 2024, indicating not cyclical downturn but fundamental sector transformation accelerating in 2025.

Key Details:

• YTD Retail Cuts: 79,865
• Year-over-Year: +255% vs. Jan-June 2024
• Primary Drivers: Tariffs, inflation, economic uncertainty, e-commerce shift
• Major Events: Store closures, mall anchor tenant failures, department store wind-downs
• Pattern: Accelerating brick-and-mortar decline

Notable H1 2025 Retail Cuts:

• Hudson's Bay (May): 8,347 employees, complete operational wind-down
• Various Retailers: Ongoing store closures, format conversions, regional exits
• Mall-Based Retailers: Disproportionate impact as anchor tenants close

Sector Analysis:

The 255% surge far exceeds typical retail restructuring cycles. Key factors driving retail's collapse:

• E-commerce Acceleration: Post-pandemic online shopping habits permanent, not temporary shift
• Tariff Impact: 2025 tariff policies increasing import costs, squeezing margins, forcing closures
• Inflation Pressure: Consumer spending patterns shifting to essentials, discretionary retail suffering
• Mall Extinction: Department store anchor failures creating cascading mall collapses
• Cost Structure Problems: Physical retail's rent, staffing, inventory costs unsustainable vs. online competitors
• Generational Shift: Younger consumers prefer online shopping, older retail-oriented demographics declining

For retail workers, the 79,865 year-to-date cuts signal existential sector challenge. Traditional department store, mall retail, and generalist brick-and-mortar jobs face permanent displacement rather than temporary downturn. Workers should prioritize transitions to growing segments (discount retail, specialty stores, e-commerce fulfillment, logistics) or entirely different industries. Retail experience translates to customer service, hospitality, healthcare support roles in more stable sectors.

Technology Sector: 76,214 YTD (+27%), Sustained Pressure

Technology companies announced 76,214 year-to-date layoffs, up 27% compared to the same period in 2024, representing sustained restructuring despite robust AI investment and continued innovation.

Key Details:

• YTD Technology Cuts: 76,214
• Year-over-Year: +27% vs. Jan-June 2024
• Primary Drivers: AI transformation, visa uncertainties, efficiency initiatives
• Pattern: AI eliminating traditional roles while creating new ones
• Major H1 Cuts: Intel 21k (April), IBM 8k (May), Microsoft 16k cumulative (April+May), Meta 8k (April)

Notable H1 2025 Technology Layoffs:

• Intel (April): 21,000 employees, largest tech cut of 2025
• Microsoft (Apr-May): 16,000 total (10k April, 6k May)
• Meta (April): 8,000 employees
• IBM (May): 8,000 employees (primarily HR, AI automation)
• Various Tech: Ongoing efficiency cuts, AI-driven role elimination

Sector Dynamics:

Technology's 27% increase represents critical industry transformation:

• AI Job Displacement: IBM's HR cuts exemplify AI directly replacing corporate functions (recruitment, onboarding, performance management)
• Dual Pressure: Companies simultaneously cutting traditional roles while investing billions in AI infrastructure
• Chip Sector Stress: Intel's 21,000 cuts signal semiconductor industry challenges beyond cyclical downturn
• Visa Uncertainty: H-1B and immigration policy changes creating hiring constraints, layoff pressures
• Profitability Focus: Post-ZIRP (zero interest rate policy) era requiring margin improvement, cost discipline
• Maturity Pressures: Cloud, streaming, social media markets maturing, requiring efficiency vs. growth

Technology workers face unique challenge: AI creating net job losses in aggregate despite creating some new roles. The 76,214 cuts include traditional engineers, product managers, middle management, HR, support functions. Workers must continuously update skills toward AI/ML capabilities, consider stable tech segments (cybersecurity, healthcare IT, financial tech), or transition to emerging areas (quantum computing, edge AI, autonomous systems).

Non-Profit Sector: 16,930 YTD (+407%), Federal Cascade

Non-profit organizations experienced 16,930 year-to-date layoffs, representing a staggering 407% increase compared to 2024, directly reflecting federal budget cuts cascading through organizations dependent on government funding.

Key Details:

• YTD Non-Profit Cuts: 16,930
• Year-over-Year: +407% vs. Jan-June 2024
• Primary Driver: Federal budget reductions eliminating grants, contracts
• Secondary Impact: DOGE cuts reducing government partnerships with non-profits
• Affected Areas: Social services, education, health services, research, advocacy

Cascade Effect Analysis:

The 407% non-profit surge illustrates how federal workforce cuts extend beyond government employees:

• Grant Elimination: Federal agencies cutting 12% of workforce also eliminating grants to external non-profits
• Contract Termination: Government bringing functions in-house or eliminating programs entirely
• Partnership Closure: Federal-non-profit partnerships ending as agencies restructure
• Funding Uncertainty: Multi-year grants canceled mid-cycle, creating operational crises
• Mission Impact: Social services, research, education programs shutting down

Non-profit workers face challenging transition landscape. Unlike private sector layoffs where workers move to competitors, non-profit cuts often eliminate entire programs or service categories. Workers should consider transitions to remaining stable non-profits (healthcare, major foundations), private sector roles leveraging non-profit skills (program management, fundraising, community relations), or government roles (ironic given government layoffs, but some agencies still hiring).

June Specific Cuts: Ford 10,500, Continued Automotive Pressure

June's largest single layoff came from Ford Motor Company with 10,500 employees, representing continued automotive sector pressure as traditional manufacturers navigate electric vehicle transition.

Notable June Announcements:

• Ford Motor Company: 10,500 employees, likely EV transition-related restructuring
• Various Companies: Smaller cuts distributed across sectors
• Regional Concentrations: East region (government), Midwest (automotive), continuing patterns

Ford's 10,500 cuts highlight ongoing automotive industry challenges as legacy manufacturers struggle with electric vehicle profitability, manufacturing process changes, and intense competition from Tesla and Chinese EV makers. The automotive sector broadly faces similar pressures throughout 2025.

Regional Distribution: East +222% (Government Impact)

Geographic analysis reveals federal cuts concentrating layoffs in specific regions:

Regional Year-over-Year Changes (H1 2025 vs. H1 2024):

• East Region: +222% (421,330 total cuts, government dominance in D.C.)
• South Region: +31% (Georgia, Florida notable increases)
• Midwest Region: +4.1% (Ohio +105%, automotive stress)
• West Region: -0.7% (essentially flat, California 100,084 cuts, +41%)

State Highlights:

• California: 100,084 cuts (+41%), tech sector concentration
• Washington D.C. Area: Massive federal cuts driving East region surge
• Ohio: +105% increase, automotive and manufacturing stress
• Nebraska: Notable increase, agricultural and food processing impacts

The East region's 222% surge directly reflects federal agency headquarters concentration in Washington D.C. and surrounding areas. The 288,628 federal cuts disproportionately impact this region, creating localized employment crisis beyond national averages. West region's relative stability (flat) despite California's 100k cuts suggests other Western states offsetting California's technology sector pressure.

Layoff Causes: Economic Conditions Lead (154,126)

Challenger data breaks down reasons for H1 2025 layoffs:

• Economic Conditions: 154,126 cuts (inflation, tariffs, uncertainty, demand shifts)
• Closures: 107,142 cuts (store, unit, plant closures)
• Restructuring: 64,487 cuts (organizational changes, efficiency)
• Technological Updates: 20,000 cuts (automation, AI implementation)
• AI Explicitly Cited: 75 cuts (explicitly attributed to Artificial Intelligence)
• Other Reasons: Various (mergers, relocations, etc.)

Analysis of Causes:

The 154,126 economic condition cuts reflect employers responding to inflation, tariff impacts, and demand uncertainty. The 107,142 closure cuts (primarily retail) indicate permanent capacity reductions rather than temporary adjustments. Restructuring's 64,487 represent optimization and efficiency drives. The 20,000 technology-related cuts (with only 75 explicitly AI-cited) suggest companies underreporting AI's true impact, likely classifying AI-driven cuts under "restructuring" or "efficiency" rather than explicitly naming technology.

Hiring Plans: 82,932 Announced (+19% vs. 2024)

Despite elevated layoffs, employers announced 82,932 planned hires through June 2025, up 19% compared to 69,920 at the same point in 2024, indicating selective hiring in growth areas despite widespread cuts.

Key Details:

• H1 2025 Hiring: 82,932 announced
• H1 2024 Hiring: 69,920 announced
• Year-over-Year: +19% increase
• June Specific: Down 67% from May, down 83% from June 2024
• Pattern: Overall increase masks June weakness

Hiring vs. Layoffs Context:

The 82,932 hiring plans vs. 744,308 layoffs creates net negative 661,376 announced employment change. While hiring plans increased 19%, layoffs increased 80%, creating massive imbalance. Additionally, June hiring intentions dropped 67% month-over-month and 83% year-over-year, suggesting employers increasingly cautious about expansion despite Q1-Q2 hiring announcements.

Growing sectors (healthcare, AI-specific roles, some financial services, infrastructure) driving hiring increases, while declining sectors (retail, government, traditional tech roles) overwhelming with cuts.

What This Means for Workers

For All Job Seekers:

• Extended Competition: 744,308 laid-off workers (H1) creating intense talent surplus
• Job Search Duration: Average 6-12 months given market saturation
• New Normal Baseline: Market stabilized at elevated layoff rates, not returning to pre-2025 levels
• Financial Preparation: 12-18 month emergency fund critical given search duration and continued layoff risk
• Sector Selectivity: Target growth sectors ruthlessly (healthcare stable, some financial services, infrastructure)
• Skills Premium: AI capabilities, specific technical skills command disproportionate advantage

For Technology Workers:

• 76,214 YTD Cuts: Creating oversupply of quality tech talent
• AI Skills Essential: Workers without AI/ML capabilities facing structural disadvantage
• Specialization Valuable: Generalist roles oversupplied, specialists (cybersecurity, data engineering, AI/ML) still in demand
• Emerging Areas: Quantum computing, edge AI, autonomous systems, climate tech offering opportunities
• Stable Segments: Healthcare IT, financial technology, government contractors (select agencies) more stable

For Retail Workers:

• 79,865 YTD (+255%): Signals sector in structural decline, not temporary downturn
• Exit Strategy Required: Traditional retail jobs facing permanent displacement
• Transition Options: E-commerce fulfillment, logistics, customer service in stable industries
• Growing Segments: Discount retail (dollar stores), specialty stores, grocery relatively stable
• Adjacent Industries: Hospitality, healthcare support, warehousing actively hiring

For Federal Employees:

• 288,628 YTD (12% of workforce): Historic peacetime reduction
• June Stabilization: 3,801 cuts suggest major restructuring phases completing
• Remaining Risk: H2 2025 uncertainty whether additional waves occur
• Workload Impact: 12% workforce reduction creating operational strain for remaining staff
• Private Sector Transition: Federal skills valuable but salary, benefits adjustments required
• Contractor Caution: Government contractors vulnerable to budget cuts and reduced spending

For Non-Profit Workers:

• 16,930 YTD (+407%): Catastrophic sector impact from federal cuts
• Funding Crisis: Multi-year grants canceled, partnerships terminated mid-cycle
• Mission Impact: Programs and services shutting down entirely, not just reducing
• Transition Options: Stable non-profits (healthcare, major foundations), private sector program management, some government roles
• Skills Transfer: Program management, fundraising, community relations valuable in multiple sectors

Looking Ahead: H2 2025 and Full-Year Outlook

Second half 2025 projections based on H1 performance:

Full-Year Projections:

• If H2 matches H1 pace: 1.49 million total (744k H1 x 2)
• If H2 moderates 25%: 1.30 million total (744k H1 + 558k H2)
• If H2 moderates 50%: 1.12 million total (744k H1 + 372k H2)
• Historical Context: 2020 pandemic ~1.9M, 2009 recession ~1.7M

Factors Supporting Continued Elevation:

• Structural Transformation: AI, retail disruption, government efficiency ongoing, not temporary
• Economic Uncertainty: Tariff impacts, inflation, recession risks encouraging defensive cutting
• Profitability Pressure: Post-ZIRP era requiring sustained margin focus
• Retail Collapse: 255% surge suggests accelerating sector transformation continuing
• AI Acceleration: Rapid capability improvements may accelerate job displacement

Factors Supporting Moderation:

• Government Stabilization: Major DOGE phases complete, maintenance mode reducing cuts
• Q2 Moderation: April-May-June trend showing sequential decline
• Healthcare Hiring: Sector continues adding jobs, offsetting losses elsewhere
• Tight Labor Market: 4.2% unemployment limiting companies' willingness to cut deeply
• Announced vs. Actual: Some announced cuts may not fully materialize

H2 2025 Wildcards:

• Economic Trajectory: Recession would accelerate cuts dramatically; strong growth would moderate
• Government Policy: Additional DOGE phases, agency reorganizations possible
• Tariff Evolution: Trade policy changes could spike or moderate retail stress
• AI Breakthroughs: Major capability advances could accelerate displacement
• Election Cycle: 2026 midterm preparations may influence H2 2025 policy

Methodology: Understanding Challenger Data

What Challenger Tracks:

Challenger, Gray & Christmas compiles announced layoffs from:

• Company press releases and official statements
• SEC filings (8-K, 10-K, 10-Q)
• WARN (Worker Adjustment and Retraining Notification) notices
• News media reports from credible outlets
• Government announcements and agency communications
• Direct company communications

Important Limitations:

• Announced vs. Actual: June's 47,999 represents announced intentions, not completed separations
• Implementation Timing: Layoffs may occur immediately or months after announcement
• Coverage Gaps: Excludes unreported terminations, small company cuts, individual firings
• Public Announcements Only: Many companies reduce headcount quietly without public disclosure
• Global vs. U.S.: Some announcements include global cuts, not just U.S. positions
• Underreporting AI: Only 75 cuts explicitly attributed to AI despite broader technology impact

JOLTS Data (Coming August):

The Bureau of Labor Statistics' JOLTS report will provide complete June separation data in August, including:

• Total layoffs and discharges (all involuntary separations, not just announced)
• Quits (voluntary separations)
• Total separations (involuntary + voluntary)

JOLTS typically shows 1.5-1.7 million total layoffs and discharges monthly, far exceeding Challenger's announced figures. However, JOLTS includes all separations while Challenger focuses on mass layoff announcements of 50+ employees.

Conclusion: Mid-Year Reckoning at Elevated Baseline

June 2025's 47,999 announced layoffs (down 49% from May, down 2% year-over-year) marks a critical mid-year inflection point where 2025's labor market dynamics crystallize. While June represents the lowest monthly total since January and suggests continued moderation from Q1's extraordinary peaks, the broader H1 2025 picture reveals historic dislocation: 744,308 total layoffs (+80% vs. 2024), Q2 2025 as highest second quarter since pandemic-era 2020 (247,256 total), and sustained elevation across government (288,628 cuts), retail (+255% surge to 79,865), technology (+27% to 76,214), and non-profit (+407% to 16,930) sectors.

For workers, June's moderation provides little relief as the labor market has stabilized at a new elevated baseline approximately double pre-2025 historical norms rather than returning to previous stability. The 744,308 laid-off workers (H1) compete for limited openings as hiring intentions decline (June hiring down 67% month-over-month, down 83% year-over-year). Federal employees navigate post-DOGE uncertainty with 12% workforce reduction complete. Retail workers confront sector in structural collapse (+255% cuts). Technology professionals face AI-driven transformation eliminating traditional roles. Non-profit workers weather funding crisis cascading from federal cuts.

The first half of 2025 concludes with 124,051 average monthly layoffs, positioning the year on track for 1.49 million full-year cuts if H2 matches H1 pace. This would approach pandemic (2020: 1.9M) and recession (2009: 1.7M) levels despite 4.2% unemployment and absence of acute economic crisis. The disconnect reflects structural transformation (AI adoption, government efficiency, retail disruption, profitability focus) rather than cyclical downturn, suggesting elevated layoffs may persist beyond 2025 as new labor market equilibrium establishes.

H2 2025 trajectory depends on economic conditions, government policy evolution, tariff impacts, and AI advancement pace. Optimistic scenario sees H2 moderating 50% from H1 (1.12M full-year total), base case projects H2 matching H1 pace (1.49M full-year), pessimistic scenario envisions economic slowdown accelerating cuts (1.6-1.8M full-year approaching crisis levels). For workers across all sectors, June's mid-year checkpoint reinforces the importance of financial preparedness, continuous skill development, AI capability acquisition, sector selectivity, and strategic career navigation in 2025's transformed and challenging employment landscape.

Data sources: Challenger, Gray & Christmas Job-Cut Report (June 2025), official Q2 2025 summary. For sector employment trends, see our analytics dashboard. For specific company tracking, visit our layoffs tracker.

Article Updates

July 3, 2025: Initial publication based on Challenger, Gray & Christmas report showing 47,999 total announced job cuts in June 2025 (down 49% from May but Q2 highest since 2020). Q2 total: 247,256 (highest Q2 since pandemic). Year-to-date: 744,308 layoffs (+80% vs. 2024, highest mid-year since 2020). Notable sector totals: Government 288,628 YTD (39% of total), Retail 79,865 (+255%), Technology 76,214 (+27%), Non-Profit 16,930 (+407%). Ford 10,500 largest June cut. Article establishes June as mid-year inflection showing moderation from Q1 peaks but sustained elevation at new baseline approximately double pre-2025 norms, positioning 2025 for potential 1.49M full-year cuts approaching crisis levels.