Article
September 2025 Layoffs Report: 54,000 Job Cuts as YTD Nears 950,000, Hiring Hits 16-Year Low
Layton Gray
Published October 2, 2025 • Updated November 28, 2025 • 11 min read
11 min read
Editorial Note: This article represents analysis and commentary based on publicly available data and news sources. The views and interpretations expressed are those of theNumbers.io research team. While we strive for accuracy, employment data is subject to change and company statements may evolve. We make no warranties regarding the completeness or accuracy of information herein. For corrections or concerns, contact: editorial@thenumbers.io
TLDR: Key Takeaways (click to expand)
- • 54,000 job cuts in September, YTD approaches 950,000
- • Hiring hits 16-year low: Only 139,000 jobs added (excluding government)
- • Tech: 19,305 cuts (Salesforce 4k) | Financial services: 8,000+
- • Labor market softening: Job openings down 15% from peak
- • Concern growing: Cuts accelerating while hiring slows simultaneously
U.S. employers announced 54,064 layoffs in September 2025, a 37% decrease from August's 85,979 cuts. On the surface, this appears to signal moderation after three consecutive months of acceleration. But the September report tells a more complex story.
Year-to-date layoffs reached 946,426, the highest level since 2020 and just 53,574 short of the psychologically significant 1 million mark. More alarming, planned hiring for the first nine months of 2025 fell to 204,939, the lowest level for this period since Challenger, Gray & Christmas began tracking hiring announcements in 2009.
In other words: while monthly layoffs moderated in September, the labor market showed no signs of recovery. Companies stopped cutting as aggressively, but they also stopped hiring almost entirely. This represents a hiring freeze, not a turnaround.
"September's decline in layoffs is welcome news, but the context matters," said Andy Challenger, Senior Vice President of Challenger, Gray & Christmas. "Year-to-date hiring plans are at a 16-year low. When companies reduce layoffs but don't resume hiring, that's not a recovery. It's stagnation with nearly a million displaced workers competing for positions that don't exist."
September 2025 by the Numbers
| Metric | September 2025 | Change from August | Change YoY |
|---|---|---|---|
| Total Job Cuts | 54,064 | -37.1% (-31,915) | Data unavailable |
| YTD Total | 946,426 | — | +76% vs. Jan-Sept 2024 |
| Planned Hiring (YTD) | 204,939 | — | Lowest since 2009 |
| Q3 2025 Total | 195,018 | — | Second-highest Q3 on record |
| BLS Jobs Added | 119,000 | — | Above expectations |
| Unemployment Rate | 4.4% | +0.1 point | Highest since October 2021 |
Sources: Challenger, Gray & Christmas Job-Cut Report, October 2025; Bureau of Labor Statistics (delayed September report released November 19)
The Bureau of Labor Statistics reported 119,000 jobs added in September, exceeding economists' forecasts. However, this report was delayed by weeks due to the ongoing government shutdown, creating uncertainty in economic planning. The unemployment rate rose to 4.4%, the highest level since October 2021.
The Hiring Collapse: A 16-Year Low
The most alarming development in September was not the layoff total. It was the continued collapse of announced hiring plans.
For the first nine months of 2025, employers announced plans to add just 204,939 jobs. This is the lowest January-September total since 2009, when the financial crisis devastated the labor market and employers announced 160,000 hires during the same period.
| Period | Announced Hiring (Jan-Sept) | Announced Layoffs (Jan-Sept) | Net Announced |
|---|---|---|---|
| 2009 (Financial Crisis) | ~160,000 | ~1,400,000 | ~-1,240,000 |
| 2020 (Pandemic) | Low (exact figure unavailable) | ~950,000 | Highly negative |
| 2025 (Current) | 204,939 | 946,426 | -741,487 |
| 2024 (Jan-Sept) | ~280,000 | ~540,000 | ~-260,000 |
The 741,487 net negative announced employment change represents 4.6 layoffs for every announced hire. This is a labor market in crisis, not recovery.
"The hiring numbers are what keep me up at night," Challenger said. "Companies have finished their restructuring waves for now, so monthly layoffs are declining. But they're not rehiring. That leaves nearly a million displaced workers with nowhere to go."
Q3 2025: Second-Highest Quarter on Record
While September's monthly total decreased, the third quarter of 2025 still ranks as the second-highest Q3 on record:
| Quarter | Total Layoffs | Average Monthly | Key Drivers |
|---|---|---|---|
| Q3 2020 | ~380,000 | ~127,000 | Pandemic recovery struggles |
| Q3 2025 | 195,018 | 65,006 | Multi-sector restructuring, AI displacement |
| Q3 2024 | ~120,000 | ~40,000 | Tech-focused downturn |
Breakdown: July 62,075 + August 85,979 + September 54,064 = 195,018
The 195,018 layoffs announced in Q3 2025 represent a 63% increase over Q3 2024's ~120,000 cuts. Only the pandemic-impacted Q3 2020 saw higher quarterly totals in recent history.
September Sector Breakdown
Technology: 19,305 Cuts (156,726 YTD)
The technology sector announced 19,305 layoffs in September, bringing the year-to-date total to 156,726. This represents a potential stabilization after months of elevated cuts, but the cumulative toll remains severe.
Major September tech layoffs included:
- Salesforce: 4,000 cuts as the company continues restructuring its customer support operations, replacing roles with AI-powered systems
- Microsoft: 42 cuts in Redmond, Washington, marking the fifth consecutive month of small-scale reductions (over 15,000 total in 2025)
- xAI: 500 cuts (Elon Musk's AI company reducing staff despite major funding rounds)
The technology sector now accounts for 16.6% of all 2025 layoffs. While September's 19,305 cuts were lower than recent months, the sustained pressure on tech workers continues as companies invest billions in AI infrastructure while simultaneously cutting human headcount.
Artificial Intelligence: 7,000 Cuts Attributed to AI
September marked a significant milestone in AI-driven job displacement: 7,000 layoffs were explicitly attributed to artificial intelligence implementation, bringing the year-to-date AI-attributed total to 17,375.
This represents a dramatic acceleration. Consider the monthly progression:
| Month | AI-Attributed Cuts | YTD Cumulative |
|---|---|---|
| January-June | ~5,000 | 5,000 |
| July | ~2,000 | 7,000 |
| August | ~3,375 | 10,375 |
| September | 7,000 | 17,375 |
AI-attributed cuts more than doubled from August to September. As companies move AI implementations from pilot phases to full deployment, roles in customer service, data analysis, content creation, and administrative support are being eliminated.
Salesforce's 4,000-person reduction in September was explicitly tied to AI-powered customer support systems replacing human agents. This pattern is expanding across industries as companies recognize the cost savings from AI automation.
Government: Still Leading YTD (299,755 Total)
The government sector continues to lead all sectors in year-to-date layoffs with 299,755 cuts, primarily driven by the Department of Government Efficiency (DOGE) initiative targeting federal workforce reduction.
However, September saw reduced government layoffs compared to the peak months of February and March, when DOGE cuts dominated headlines. The federal workforce reduction has moderated as the most severe cuts have been completed.
The ongoing government shutdown, which delayed the September BLS jobs report by more than six weeks, further complicates analysis of the government sector's labor market impact.
Other Notable September Layoffs
Beyond technology and government, September saw significant cuts across diverse sectors:
- ConocoPhillips: 2,600 cuts in the energy sector as oil prices remained volatile
- Starbucks: 900 corporate positions eliminated amid ongoing labor relations challenges
- Comcast: 540 cuts as traditional cable subscriptions continued declining
- Rivian: 200 cuts as the electric vehicle startup faced production challenges
Economic Context: Mixed Signals
September's labor market data presented contradictory signals:
The Positives
- Job Creation: BLS reported 119,000 jobs added, exceeding forecasts
- Layoffs Declining: 54,064 announced cuts, down 37% from August
- Job Openings Stable: JOLTS data from August showed 7.23 million openings, roughly flat
The Negatives
- Unemployment Rising: 4.4%, highest since October 2021
- Hiring Collapse: YTD announced hiring lowest since 2009
- Wage Growth Slowing: 0.2% monthly, 3.8% annually (modest)
- YTD Layoffs: 946,426, highest since 2020
The Federal Reserve responded to labor market weakness by cutting interest rates 25 basis points to 4.00%-4.25%, attempting to spur hiring. However, rate cuts take months to impact employment decisions, and the persistent hiring freeze suggests companies remain cautious despite easier monetary policy.
The Government Shutdown's Impact
The ongoing government shutdown significantly impacted September's labor market analysis. The Bureau of Labor Statistics delayed the September jobs report by more than six weeks, finally releasing it November 19. This created a data vacuum that complicated economic policymaking and business planning.
Moreover, the shutdown itself contributed to labor market uncertainty. Federal contractors faced payment delays, government workers experienced furloughs or delayed paychecks, and economic data collection was disrupted.
The irony: a government initiative aimed at reducing federal employment (DOGE) contributed to a government shutdown that made it harder to understand the labor market impact of that same initiative.
2025 Quarterly Progression
Examining 2025's layoffs by quarter reveals the crisis's evolution:
| Quarter | Total Layoffs | Key Events |
|---|---|---|
| Q1 2025 | 497,052 | DOGE Phase 1, Meta cuts, baseline tech restructuring |
| Q2 2025 | 247,356 | Moderation after Q1 spike, Intel surge in April |
| Q3 2025 | 195,018 | Pharma/finance emerge, AI acceleration, three-month spike |
| YTD Total | 946,426 | Approaching 1M milestone |
The quarterly data shows Q1 dominated by the DOGE federal workforce reduction (275,240 cuts in March alone), Q2 moderating as those cuts concluded, and Q3 rising again as pharmaceutical, financial, and AI-driven cuts accelerated.
The 1 Million Milestone Approaches
With 946,426 layoffs announced through September, 2025 needs just 53,574 additional cuts in Q4 to cross 1 million. This milestone appears certain to be reached, likely in October.
For context, only three years since 2000 have seen annual layoffs exceed 1 million:
| Year | Total Layoffs | Primary Drivers |
|---|---|---|
| 2009 | ~1,700,000 | Financial crisis, Great Recession |
| 2008 | ~1,400,000 | Financial crisis begins |
| 2001 | ~1,900,000 | Dot-com bust, 9/11 |
| 2025 (Projected) | 1,200,000-1,400,000 | Multi-sector crisis, AI displacement, DOGE |
2025 is on track to be the fourth year since 2000 to exceed 1 million layoffs, placing it among the worst employment years of the modern era.
What This Means for Workers
For Displaced Workers (946,426 and Counting)
The 946,426 workers who have lost jobs or learned of impending layoffs in 2025 face an exceptionally difficult market:
- Hiring Freeze: With announced hiring at 16-year lows, large employers are not absorbing displaced workers
- Extended Searches: Job search durations of 12-24 months are increasingly common in saturated fields
- Geographic Saturation: Markets like Washington D.C. (294,696 cuts) and California (135,241 cuts) have oversupply
- Sector Risk: Tech (156,726 cuts), government (299,755 cuts), pharma (22,433 cuts), and finance (44,986 cuts) all show sustained pressure
For Currently Employed Workers
Even workers not facing immediate layoffs should prepare for continued market uncertainty:
- Emergency Funds: Target 9-18 months of expenses given extended job search timelines
- Skills Development: Focus on AI-complementary skills (prompt engineering, AI oversight, data interpretation)
- Industry Awareness: Monitor your sector's layoff trends; six major sectors now show sustained pressure
- Network Building: Personal connections drive 70%+ of hires in down markets
For Job Seekers and Recent Graduates
New labor market entrants face a nearly impossible environment:
- Competition: You're competing with 946,426 displaced workers, many with years of experience
- Limited Openings: Announced hiring is at 16-year lows; openings that exist receive hundreds of applications
- Consider Alternatives: Additional education, certification programs, or internships may provide better positioning
- Target Stability: Healthcare services, infrastructure, and defense contracting show relative resilience
Is This a Recovery or a Plateau?
September's 37% decline in layoffs raises an important question: is this the beginning of labor market recovery, or merely a plateau before further deterioration?
The Case for Recovery
- Layoffs declined for the first time after three-month acceleration
- BLS jobs added (119,000) exceeded forecasts
- Major restructuring waves (government, pharma) may have peaked
- Federal Reserve rate cuts could spur hiring in coming months
The Case for Plateau (Not Recovery)
- Announced hiring remains at 16-year lows (204,939 YTD)
- Unemployment rising (4.4%, highest since October 2021)
- AI displacement accelerating (7,000 cuts in September alone)
- Companies reducing layoffs because restructuring is complete, not because they're hiring again
- YTD layoffs (946,426) still tracking toward 1.2M+ full-year
The evidence suggests plateau rather than recovery. Companies have finished the most aggressive restructuring cuts, so monthly layoffs declined. But the hiring freeze persists, leaving displaced workers with nowhere to go.
Looking Ahead: Q4 2025 and Beyond
Several factors will determine whether Q4 brings genuine recovery or continued stagnation:
Factors That Could Improve the Market
- Holiday Hiring: Retailers typically add seasonal workers in Q4; strong holiday hiring would signal consumer confidence
- Rate Cut Impact: Fed's September rate cut may stimulate hiring with a 3-6 month lag
- Government Shutdown Resolution: Ending the shutdown would restore federal contracting and remove uncertainty
- AI Stabilization: Companies may complete initial AI implementations, reducing displacement
Risks That Could Worsen the Market
- Recession Fears: Economic slowdown could trigger additional defensive layoffs
- Continued AI Displacement: Expansion of AI to new roles (sales, marketing, finance) could accelerate cuts
- Earnings Pressure: Weak Q4 earnings could prompt Q1 2026 restructuring
- Government Shutdown Continuation: Prolonged shutdown creates cascading economic impacts
Conclusion: 946,426 Workers and Counting
September 2025 presented a paradox: monthly layoffs declined 37%, yet the labor market showed no signs of genuine recovery. The 54,064 cuts announced in September brought the year-to-date total to 946,426, approaching the psychologically significant 1 million mark.
More troubling, planned hiring fell to 204,939 for the first nine months of the year, the lowest level since 2009. This represents a hiring freeze, not a recovery. Companies stopped cutting as aggressively, but they also stopped hiring.
For the 946,426 workers who have lost jobs or learned of impending layoffs in 2025, the path forward remains difficult. Job searches extend 12-24 months. Competition is fierce. And the breadth of the crisis (technology, government, pharmaceuticals, finance, retail) means few sectors offer refuge.
The September data suggests stabilization at an elevated level of pain, not improvement. And with AI displacement accelerating (7,000 cuts in September alone) and Q4 historically a period of pre-holiday restructuring, the crisis may not yet have reached its conclusion.
2025 will almost certainly cross 1 million layoffs, making it one of the four worst employment years since 2000. The question now is whether 2026 brings genuine recovery or merely continuation of the "new normal" of elevated layoffs and frozen hiring.
For ongoing analysis of labor market trends, visit our Analytics Hub. Track specific company workforce changes and layoff events. Compare these layoffs to our September 2025 Jobs Report for the complete employment picture.
Article Updates
October 2, 2025 (Initial Publication): Published with September 2025 Challenger, Gray & Christmas data showing 54,064 layoffs (down 37% from August) and YTD total of 946,426.
October 30, 2025: Updated with JOLTS (Job Openings and Labor Turnover Survey) data and additional sector breakdowns.
November 19, 2025: Updated with delayed September BLS employment figures showing 119,000 jobs added and 4.4% unemployment rate (delayed due to government shutdown).
November 23, 2025: Updated Q3 analysis and added historical context comparing 2025 to prior crisis years.
