(Nov 6): US companies announced the most job cuts for any October in more than two decades as artificial intelligence (AI) reshapes industries and cost-cutting accelerates, according to data from outplacement firm Challenger, Gray & Christmas Inc.
Companies last month announced 153,074 job cuts, nearly triple the number during the same month last year and driven by the technology and warehousing sectors. It’s the most for any October since 2003, when the advent of cellphones was similarly disruptive, said Andy Challenger, the company’s chief revenue officer.
“Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes,” Challenger said in the report. “Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labour market.”
The numbers are weak no matter how they are spliced. Year-to-date job cuts have exceeded one million, the most since the pandemic. In the same period, US-based employers have announced the fewest hiring plans since 2011. Seasonal hiring plans through October are the lowest since Challenger started tracking them in 2012.
“It’s possible with rate cuts and a strong showing in November, companies may make a late season push for employees, but at this point, we do not expect a strong seasonal hiring environment in 2025,” said Challenger.
Mounting job-cut announcements risk fuelling concerns about the health of the labour market just as newly unemployed Americans are facing a diminished hiring environment. The figures could also be viewed at odds with Federal Reserve chair Jerome Powell’s recent characterisation that there’s only a “very gradual cooling” in the job market.
See also: Fed’s Miran says ADP jobs data slightly better than expected
The report puts a number on the anecdotal evidence of lay-offs rippling through the economy. Amazon.com Inc, Meta Platforms Inc, Target Corp and Paramount Skydance Corp were among last month’s job-cut headlines, and hiring has been tepid in many sectors.
Payrolls at US companies increased by 42,000 in October after two straight months of declines, signaling some stabilisation while consistent with a general softening in labour demand, ADP Research data showed on Wednesday. Revelio Labs will also put out a job-market report later on Thursday as economists increasingly turn to private-sector data in the government shutdown.
Uploaded by Tham Yek Lee
