September Job Cuts Fall 37% From August; YTD Total Highest Since 2020, Lowest YTD Hiring Since 2009

Source: Challenger, Gray & Christmas

02 Oct September Job Cuts Fall 37% From August; YTD Total Highest Since 2020, Lowest YTD Hiring Since 2009

Published October 2, 2025
U.S.-based employers announced 54,064 job cuts in September, a 37% drop from the 85,979 cuts announced in August. It is down 26% from the 72,821 announced in the same month last year. September marks the third time this year job cuts were lower than the corresponding month one year earlier, according to a report released Thursday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas.

In the third quarter, planned layoffs by U.S. employers totaled 202,118, the highest Q3 total since 2020, when 497,215 job cuts were recorded. It is up 16% from the 174,597 planned cuts announced in the third quarter of 2024, and down 18% from the 247,256 recorded in the previous quarter.

So far this year, companies have announced 946,426 job cuts, the highest YTD since 2020 when 2,082,262 were announced. It is up 55% from the 609,242 job cuts announced through the first three quarters of last year and is up 24% from the 2024 full year total of 761,358. The 2025 year-to-date total is the fifth highest in the 36 years Challenger has reported.

“It’s very likely job cut plans are going to surpass a million for the first time since 2020 and for the ninth time in our series. Previous periods with this many job cuts occurred either during recessions or, as was the case in 2005 and 2006, during the first wave of automations that cost jobs in manufacturing and technology,” said Andy Challenger, Senior Vice President and labor expert for Challenger, Gray & Christmas.

“Right now, we’re dealing with a stagnating labor market, cost increases, and a transformative new technology. With rate cuts on the way, we may see some stabilizing in the job market in the fourth quarter, but other factors could keep employers planning layoffs or holding off hiring,” he added.

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