Layoffs climb to highest level since 2020: Research

Layoffs across the United States have climbed to the highest level since 2020, when the COVID-19 pandemic slowed down economies around the world, according to a new report that was published on Wednesday. 

The report, which was released by the executive coaching firm Challenger, Gray & Christmas, said companies have announced 744,308 job cuts so far this year, the highest tally since 2020, when 1,585,047 positions were slashed. 

Excluding the 2020 figures, the number of job cuts in 2025 is the highest since the first half of 2009, when 896,675 cuts were made. 

The U.S.-based companies announced 47,999 job cuts in June, nearly 50 percent lower than the 93,816 reductions in May. 

“The bulk of companies cited economic conditions last month. We saw some DOGE activity and have tracked over 2,000 jobs directly attributed to tariffs this year, but for the most part it was a quiet June,” the firm's senior vice president and labor expert Andrew Challenger said in a statement. 

Challenger, Gray & Christmas laid out several reasons why layoffs have increased this year. The leading reason is the impact of the Department of Government Efficiency (DOGE), which was cited in 286,679 planned layoffs in 2025. 

Economic and market conditions was the second most-cited reason for reductions, linked to 154,126 cuts this year. 

The shutdown of stores, plants and units has resulted in 107,142 layoffs. Restructuring efforts have also caused 64,487 job cuts. Bankruptcies led to another 35,641 cuts.

Retail has seen the most cuts in the private sector in 2025, with 79,865 reductions, an increase of 255 percent compared to the first half of 2024, when 22,467 job cuts took place. 

“Retailers are one of the hardest hit business sectors by tariffs, inflation, and uncertainty. If consumer spending continues to fall, it could mean more job losses in this industry,” Challenger said in a statement.