May 2025 Layoffs Report: 94,000 Job Cuts as Tech and Retail Continue Restructuring

U.S. employers announced 93,816 job cuts in May 2025, according to Challenger, Gray & Christmas, representing an 11% decline from April's 105,441 layoffs but still 47% higher than May 2024. The layoff landscape diversified in May, with major cuts spread across technology (IBM 8,000, Microsoft 6,000), retail (Hudson's Bay 8,347), manufacturing (Panasonic 10,000), and federal government (HHS 10,000). Unlike March's government dominance or April's Intel-driven tech surge, May showed broad-based restructuring across multiple sectors.

May's 93,816 announced layoffs occurred alongside our May 2025 Jobs Report showing the economy added 139,000 positions. This represents continued positive net employment (gains exceeding announced cuts by approximately 45,000), though the margin narrowed from April's 72,000 surplus. May brought year-to-date 2025 layoffs to 696,309, an 80% surge compared to the same period in 2024 and maintaining 2025's trajectory toward potentially 1.6+ million full-year announced cuts.

This May report reveals a labor market transitioning from headline-grabbing mega-layoffs (Intel's April 21,000, federal government's March 216,670) to persistent, widespread restructuring. No single company dominated May's numbers. Instead, steady cuts across technology, retail, manufacturing, telecom, and government created a 93,816 total that, while lower than April, remains dramatically elevated compared to pre-2025 historical norms. For workers across sectors, May demonstrated that layoff risk persists broadly rather than concentrating in specific industries.

The Big Picture: May Layoffs by the Numbers

Challenger, Gray & Christmas reported widespread May layoff activity:

• Total Announced Layoffs: 93,816 job cuts
• Month-over-Month: -11% from April 2025 (105,441 cuts)
• Year-over-Year: +47% from May 2024
• Historical Context: Significantly elevated compared to typical May averages
• Year-to-Date: 696,309 total layoffs (+80% vs. 2024 YTD)
• Pattern: No single sector dominance, broad-based restructuring
• Leading Sectors: Technology, Retail, Manufacturing, Government all active

Context: Jobs Gained vs. Jobs Lost

The 93,816 announced layoffs alongside 139,000 jobs added continues positive net employment:

• Jobs added: +139,000 (BLS Employment Situation)
• Announced layoffs: 93,816 (Challenger data)
• Announced net: Positive ~45,000 after accounting for announced cuts
• Narrowing margin: Down from April's +72,000 surplus
• Year-to-Date (Jan-May): 696,309 layoffs announced in first five months
• Monthly average: 139,262 announced layoffs per month

May marks the third consecutive month of positive net employment after March's negative month. However, the narrowing surplus (April +72k, May +45k) combined with moderating job gains (April 177k, May 139k) and persistent layoffs (93k+ for third consecutive month excluding March peak) signal gradual labor market cooling. See our analytics dashboard for sector-level trends.

Technology Sector: 20,000+ Cuts (IBM, Microsoft Lead)

Technology companies announced 20,000+ layoffs in May, down from April's extraordinary 23,400 but maintaining elevated restructuring levels. Unlike April's Intel-dominated narrative (21,000 of 23,400), May's tech cuts distributed across multiple companies with IBM and Microsoft leading.

Key Details:

• May Technology Cuts: 20,000+ announced layoffs (estimated)
• Month-over-Month: -15% from April's 23,400
• Year-to-Date (Jan-May): 80,497+ total technology cuts
• Pattern: Continued pressure but more distributed than April
• Focus: AI/automation driving HR and middle management cuts

Notable May Technology Announcements:

• IBM: 8,000 employees, primarily HR department, AI and automation focus
• Microsoft: 6,000 employees across support, administration, middle management, management structure flattening for AI investment
• Amazon: 100 employees in devices and services (Alexa, Echo, Ring, Zoox)
• Disney: Several hundred employees worldwide across film/TV marketing, publicity, casting, development
• Chegg: 248 employees (22% of workforce), AI tools (ChatGPT) impact on education sector
• Regional tech: Washington state saw 2,300+ tech layoffs (Microsoft, others)

Sector Analysis:

May's 20,000+ technology cuts reflect a critical shift from April's mega-layoff pattern to sustained, systematic restructuring. Key factors driving May's tech layoffs:

• AI-Driven HR Elimination: IBM's 8,000 HR cuts exemplify automation directly replacing traditional corporate functions. AI handling recruitment, onboarding, performance management eliminates need for large HR departments
• Management Layer Compression: Microsoft's 6,000 cuts targeting support, administration, middle management signal companies flattening hierarchies to move faster, reduce costs, invest savings in AI infrastructure
• AI Competition Impact: Chegg's 22% workforce reduction (248 employees) directly attributed to ChatGPT disrupting education technology, showing AI destroying business models
• Maturing Product Lines: Amazon's devices/services cuts (Alexa, Echo, Ring) indicate slowing growth in smart home market, requiring cost optimization
• Entertainment Efficiency: Disney's marketing and development cuts reflect streaming profitability pressure and cost discipline

May's technology layoffs carry different implications than April's Intel mega-cut. Rather than a single company crisis, May shows systematic industry transformation where AI simultaneously drives cuts (HR, middle management, traditional roles) while requiring investment (requiring those savings). Technology workers face ongoing pressure with 80,497 year-to-date cuts, but May's distributed pattern suggests broadly challenging environment rather than specific company distress.

Retail Sector: Hudson's Bay 8,347, Continued Transformation

Retail sector continued dramatic restructuring in May with Hudson's Bay's 8,347 employee layoff accompanying complete operational wind-down, representing May's second-largest single company cut after Panasonic.

Key Details:

• Hudson's Bay: 8,347 employees laid off
• Context: Complete operational wind-down, all stores closing
• Reason: Persistent losses, inability to compete in evolving retail landscape
• Year-to-Date Retail: 75,802 jobs lost through May (+274% vs. 2024)
• Broader Pattern: Department stores, mall-based retailers facing extinction pressures

Retail Transformation Context:

Hudson's Bay's collapse and 8,347 layoffs illustrate fundamental retail sector challenges:

• Department Store Crisis: Traditional department stores (Sears gone, Macy's struggling, now Hudson's Bay closing) cannot compete with e-commerce convenience, price competitiveness
• Mall Decline: Anchor tenant closures accelerate mall deterioration, creating cascading failures across mall-based retail
• Cost Structure Problems: Physical retail's rent, staffing, inventory costs cannot match online retailers' efficiencies
• Consumer Behavior Shift: Pandemic accelerated permanent shift to online shopping, reduced tolerance for in-store experiences
• Competition Intensity: Amazon, fast fashion (Shein, Temu), specialty retailers fragment market, squeeze generalists

For retail workers, May's 8,347 Hudson's Bay cuts add to year-to-date 75,802 sector layoffs (+274% increase). Department store, mall retail, and traditional brick-and-mortar workers face existential employment challenges. Workers should consider transitions to growing retail segments (discount chains, specialty stores, e-commerce fulfillment, logistics) or entirely different sectors. Retail experience translates to hospitality, healthcare support, customer service roles in stable industries.

Manufacturing: Panasonic 10,000, Sector Restructuring

Manufacturing sector saw significant May cuts led by Panasonic's 10,000-employee reduction, the month's largest single company layoff, alongside automotive (Volvo 3,000) and other industrial restructuring.

Notable May Manufacturing Cuts:

• Panasonic Holdings: 10,000 employees, major restructuring addressing financial challenges and market adaptation
• Volvo Cars: 3,000 employees, cost-cutting amid industry transformation
• Telefonica: 4,000-5,000 employees, telecom sector streamlining
• Pemex: 3,000 jobs, Mexican energy company restructuring for cost savings
• Chevron: 200 Texas jobs, part of broader 20% workforce reduction through 2026

Manufacturing Sector Pressures:

May's manufacturing layoffs reflect multiple industry-wide challenges:

• Electric Vehicle Transition: Traditional automakers (Volvo) restructuring as EV shift requires different manufacturing processes, workforce skills, supply chains
• Asian Electronics Competition: Panasonic's 10,000 cuts reflect competitive pressure from Chinese and Korean manufacturers, margin compression
• Energy Sector Evolution: Pemex, Chevron cuts signal traditional energy industry consolidation as renewable transition accelerates
• Automation Acceleration: Manufacturing increasingly automated, reducing workforce requirements across production
• Global Competition: U.S. and European manufacturers face lower-cost Asian production

Manufacturing workers face particular challenges as sector transformation combines automation, electrification, and global competition. Panasonic's 10,000 cuts and Volvo's 3,000 indicate even established manufacturers struggling to adapt. Workers should prioritize skills in automated manufacturing systems, EV-specific capabilities (battery production, electric drivetrain), or transition to growing manufacturing segments (semiconductors, medical devices, renewable energy equipment).

Government Sector: HHS 10,000, DOGE Continues

Federal government layoffs continued in May with Department of Health and Human Services (HHS) implementing 10,000 job cuts as part of major reorganization, bringing year-to-date federal reductions to approximately 310,000+ announced positions.

Key Details:

• HHS Layoffs: 10,000 full-time employees
• Additional Departures: 10,000 employees through voluntary early retirement and deferred resignation programs
• Total HHS Impact: 20,000 workforce reduction (82,000 to 62,000 employees)
• Initiative: HHS reorganization under DOGE efficiency mandate
• Cumulative (Jan-May): Approximately 310,000+ federal positions announced for elimination

Strategic Context:

May's HHS cuts demonstrate DOGE entering Phase 3, moving from initial cuts (IRS, USDA in February-April) to systematic agency-by-agency restructuring. The 10,000 involuntary layoffs plus 10,000 voluntary departures represent 24% of HHS workforce, indicating aggressive downsizing continuing through May.

HHS reorganization affects healthcare policy, public health programs, Medicare/Medicaid administration, and disease prevention efforts. Critics warn reduced workforce capacity will impair pandemic preparedness, health program administration, and public health surveillance. Supporters argue eliminating redundancy and bureaucracy while maintaining essential services.

Impact on Federal Workers:

For federal employees, May brought continued uncertainty but at more predictable pace than March's 216,670 shock. HHS workers faced difficult decisions about voluntary retirement programs versus involuntary separation. The 20,000 total HHS impact (involuntary + voluntary) suggests many chose retirement over waiting for potential layoff.

Cumulative federal cuts (Jan-May: ~310,000 announced) now represent approximately 13% of the 2.4 million civilian federal workforce. This represents historically unprecedented peacetime federal workforce reduction, creating anxiety across all agencies as employees wonder which department faces next restructuring round.

Other Sectors: Telecom, Consulting, Services

Consulting/Professional Services:

Booz Allen Hamilton's 2,500 layoffs (7% of workforce) highlight federal contractor vulnerability. The company cited need to restructure federal civilian business and align with shifting client demands, directly linking cuts to federal government DOGE downsizing reducing contract spending.

For government contractors, May demonstrated that federal workforce reductions cascade to consulting firms, IT services, and professional services companies dependent on government contracts. Contractors face double pressure: reduced government spending plus government bringing more functions in-house.

Telecommunications:

Telefonica's 4,000-5,000 employee reduction reflects global telecom sector pressures including market saturation, intense competition, infrastructure investment requirements (5G), and margin compression. Telecom workers face ongoing consolidation and automation across the industry.

Agriculture/Food:

Chiquita Panama's 5,000 layoffs following farm strike illustrate agricultural supply chain vulnerability to labor disruptions. The mass layoff highlights how single labor actions can trigger large-scale employment losses in agriculture and food production sectors.

Year-to-Date 2025: 696,309 Layoffs (+80% vs. 2024)

May completes five months of 2025 with extraordinary cumulative layoffs:

• Year-to-Date Total: 696,309 announced layoffs (Jan-May)
• Year-over-Year: +80% increase compared to Jan-May 2024
• Monthly Breakdown: Jan 49,795 + Feb 172,017 + Mar 275,240 + Apr 105,441 + May 93,816
• Monthly Average: 139,262 layoffs per month
• Government Share: Approximately 310,000+ federal cuts (45% of YTD total)
• Technology Share: 80,497+ cuts (12% of YTD total)
• Retail Share: 75,802 cuts (11% of YTD total)
• Remaining Sectors: 229,210 (32% across manufacturing, services, other)

The 696,309 year-to-date layoffs already exceed many full-year totals from previous years. At current 139,262 monthly average pace, 2025 projects to 1.67 million announced layoffs, making it among the highest layoff years on record outside pandemic (2020) or financial crisis (2008-2009).

Q1 vs. Q2 Comparison:

Period	Total Layoffs	Monthly Average	Dominant Factor
Q1 2025	497,052	165,684/month	Government (DOGE Phases 1-2)
Apr-May 2025	199,257	99,629/month	Broad restructuring
Jan-May Total	696,309	139,262/month	Government + Tech + Broad

The comparison shows Q2 moderating from Q1's extraordinary pace (99,629 vs. 165,684 monthly average) as federal government cuts slow from March peak. However, Q2's 99,629 monthly average still dramatically exceeds typical pre-2025 monthly layoffs (usually 40,000-60,000), indicating persistently elevated restructuring environment.

Understanding May's Broad-Based Pattern

May's defining characteristic was distributed layoffs across sectors rather than concentration in one industry:

May 2025 Sector Distribution (Approximate):

Sector	Major Companies	Estimated Cuts	% of Total
Manufacturing	Panasonic 10k, Volvo 3k	~18,000	19%
Technology	IBM 8k, Microsoft 6k	~20,000	21%
Government	HHS 10k	~10,000	11%
Retail	Hudson's Bay 8,347	~12,000	13%
Telecom/Services	Telefonica 4-5k, Booz Allen 2.5k	~18,000	19%
Other	Agriculture, Energy, Entertainment	~15,816	17%

The relatively balanced distribution (no sector exceeding 21%) contrasts sharply with March (government 79%), April (technology 22% but Intel-dominated), and signals transition from crisis-driven spikes to sustained restructuring across industries.

What This Means for Workers

For Technology Workers:

• AI Skills Critical: IBM's HR cuts and Microsoft's middle management reductions show AI eliminating traditional roles, creating urgent need for AI capabilities
• Job Search Duration: 80,497 year-to-date tech layoffs creating 5-7 month average search times
• Sector Selectivity: Consider stable tech segments (cybersecurity, healthcare IT, financial tech) over consumer devices, entertainment tech
• Skill Evolution: Continuous learning in AI, machine learning, automation essential to remain employable
• Geographic Flexibility: Washington state layoffs (2,300+) show even tech hubs vulnerable, consider relocating to growing markets

For Retail Workers:

• Sector Exit Consideration: 75,802 year-to-date retail cuts (+274%) suggest considering transition to other industries
• E-commerce Shift: Traditional retail skills translate to e-commerce fulfillment, logistics, customer service
• Growing Segments: Discount retailers, specialty stores, grocery showing resilience
• Adjacent Industries: Hospitality, healthcare support, warehousing hiring

For Federal Employees:

• Continued Risk: 310,000+ year-to-date cuts suggest additional agencies face restructuring
• Voluntary Programs: Early retirement, voluntary resignation programs offering paths with some control
• Contractor Caution: Booz Allen's 2,500 cuts show government contractors vulnerable too
• Private Sector Transition: Federal skills valuable but salary, benefits adjustments likely required

For Manufacturing Workers:

• EV Transition: Traditional automotive skills need updating for electric vehicle manufacturing
• Automation Adaptation: Learn to work with automated systems rather than being replaced by them
• Growing Segments: Semiconductor manufacturing, medical devices, renewable energy equipment
• Geographic Mobility: Manufacturing concentrating in specific regions (Sun Belt, Midwest automotive)

For All Job Seekers:

• Extended Timelines: 696,309 year-to-date laid-off workers creating 6-12 month job search periods
• Financial Preparation: 12-month emergency fund increasingly critical given layoff risk and search duration
• Network Intensively: Referrals crucial as employers overwhelmed with applications from quality candidates
• Skill Development: Continuous learning, certifications, AI familiarity essential for competitiveness
• Sector Research: Target growth sectors (healthcare steady, some financial services, government contractors uncertain but some roles growing)
• Mental Health: Prolonged uncertainty and extended job searches require emotional resilience and support systems

Looking Ahead: June and Second Half 2025

Several factors will influence June and Q3 layoff trends:

Near-Term Indicators:

• Q2 Earnings Season: Companies reporting April-June results may announce additional restructuring if results disappoint
• Government Phase 4: Additional agencies may face DOGE restructuring (Education, Energy, Transportation potential targets)
• Technology Stabilization: Whether May's 20,000 tech cuts represent new baseline or temporary moderation before reacceleration
• Economic Indicators: Consumer spending, GDP growth, unemployment rate influencing business confidence and hiring/cutting decisions
• Manufacturing Outlook: Panasonic, Volvo cuts signal sector stress, watch for automotive and electronics industry trends

Announced Future Cuts:

Many May announcements specify future implementation dates. IBM's 8,000, Microsoft's 6,000, Panasonic's 10,000, and HHS's 10,000 represent forward-looking intentions converting to actual separations over coming months, creating rolling employment impacts through Q3 2025.

Additionally, Chevron announced broader plans to reduce global workforce by 20% through end of 2026, suggesting continued energy sector cuts ahead.

Potential Moderating Factors:

• Government Stabilization: If major DOGE phases complete, federal cuts could moderate in Q3-Q4
• Healthcare Hiring: Sector continues adding jobs, offsetting losses elsewhere
• Economic Resilience: If consumer spending, GDP remain strong despite elevated layoffs, companies may slow restructuring
• Tight Labor Market: 4.2% unemployment suggests underlying worker demand, limiting companies' willingness to cut too deep

Potential Accelerating Factors:

• Economic Slowdown: Any GDP contraction or recession signals would accelerate defensive cutting
• AI Acceleration: Rapid AI capability improvements may accelerate job displacement across sectors
• Retail Collapse Cascade: Additional department store, mall retailer failures could spike retail layoffs
• Tech Profitability Pressure: If AI investments fail to generate expected returns quickly, tech companies may implement deeper cuts

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: May's 93,816 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

JOLTS Data (Coming July):

The Bureau of Labor Statistics' JOLTS report will provide complete May separation data in July, 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: Sustained Restructuring Across All Sectors

May 2025's 93,816 announced layoffs (down 11% from April, up 47% year-over-year) mark a critical transition from crisis-driven spikes to sustained, broad-based restructuring. Unlike March's government-dominated 275,240 or April's Intel-driven 105,441, May distributed cuts relatively evenly across technology (IBM 8,000, Microsoft 6,000), manufacturing (Panasonic 10,000, Volvo 3,000), retail (Hudson's Bay 8,347), government (HHS 10,000), and services (Booz Allen 2,500, Telefonica 4,000-5,000).

For workers, May demonstrated that layoff risk extends across virtually all sectors rather than concentrating in specific industries. Technology workers face AI-driven elimination of HR and middle management roles. Retail workers confront department store extinction and mall decline. Manufacturing workers navigate electric vehicle transition and automation acceleration. Federal employees and government contractors weather ongoing DOGE restructuring. Services workers experience efficiency-driven optimization.

The 93,816 announced cuts alongside 139,000 jobs added (per our May Jobs Report) maintained positive net employment for the third consecutive month (excluding March). However, the narrowing surplus (April +72,000, May +45,000) combined with moderating job gains (April 177,000, May 139,000) signal gradual labor market cooling despite low 4.2% unemployment.

Year-to-date 696,309 layoffs (+80% vs. 2024) position 2025 for potentially 1.6-1.7 million full-year announced cuts, approaching pandemic (2020) and financial crisis (2008-2009) levels. However, unlike those acute crises, 2025's layoffs reflect structural transformation driven by AI adoption, government efficiency initiatives, retail sector disruption, and manufacturing evolution rather than temporary economic shock.

Q2 and Q3 2025 will reveal whether May's 93,816 represents new elevated baseline or continued moderation from Q1's extraordinary pace. Key indicators include Q2 earnings reports, additional DOGE agency restructurings, technology sector stability, manufacturing sector health, and economic growth trajectory. For workers across all sectors, May reinforced the importance of financial preparedness, continuous skill development, AI capability acquisition, and strategic career navigation in 2025's challenging and transformative employment landscape.

Data sources: Challenger, Gray & Christmas Job-Cut Report (May 2025), Intellizence, VisaVerge, Klean Industries, Washington State Office of Financial Management. For sector employment trends, see our analytics dashboard. For specific company tracking, visit our layoffs tracker.

Article Updates

June 5, 2025: Initial publication based on Challenger, Gray & Christmas report showing 93,816 total announced job cuts in May 2025 (down 11% from April but up 47% vs. May 2024). Notable broad-based cuts: Panasonic 10,000 (manufacturing), Hudson's Bay 8,347 (retail wind-down), IBM 8,000 (HR/AI), Microsoft 6,000 (middle management), HHS 10,000 (federal). Year-to-date: 696,309 layoffs (+80% vs. 2024). Article establishes May as transition month from mega-layoff crises to sustained broad restructuring across all major sectors.