US layoffs reach 20-year high in October: 10 companies that cut thousands of jobs

American companies announced 153,074 job cuts in October 2025, marking the highest monthly total in over two decades and a 183% surge from September, pushing the year-to-date total to nearly 1.1 million. This significant increase, primarily driven by accelerated AI adoption, softening consumer and corporate spending, and broader cost-cutting initiatives across technology and warehousing sectors, challenges the Federal Reserve's narrative of a gradually cooling labor market. The widespread layoffs, including major announcements from Amazon, UPS, Intel, and Salesforce, indicate a structural shift in employment dynamics, making re-employment more challenging for affected workers and contributing to the lowest year-to-date hiring outlook since 2011.

Analysis

American companies announced 153,074 job cuts in October 2025, marking the highest monthly total in over two decades and a significant 183% surge from September. This brings the year-to-date total to 1,099,500, a 65% increase from the prior year, driven primarily by accelerated AI adoption, softening consumer and corporate spending, and broader cost-cutting initiatives. The technology and warehousing sectors led this downturn, reflecting a structural shift in workforce needs.

Major corporations like Amazon, UPS, and Intel contributed significantly to these figures, with Amazon planning up to 30,000 cuts citing efficiency and AI, and UPS eliminating 48,000 roles due to automation and reorganization. Salesforce cut 4,000 customer support roles, explicitly attributing it to AI's impact on operational needs, while Chegg slashed 45% of its workforce due to "new realities of AI" affecting its business model. These examples underscore AI as a critical factor, accounting for 31,039 cuts in October alone.

This surge in layoffs contradicts the Federal Reserve's narrative of a "very gradual cooling" labor market, as newly unemployed individuals face a diminished hiring environment. Planned hires year-to-date are down 35% from 2024, reaching the lowest level since 2011, with seasonal hiring also at a multi-year low. While the Fed has lowered rates, the persistent job cuts and reduced hiring signal a significant loosening of the labor market, potentially impacting consumer confidence and spending.

Key Decisions for Investors

• Investors should reassess their economic outlook given the significant acceleration in job cuts, which contradicts the Federal Reserve's "gradual cooling" narrative and signals potential headwinds for consumer spending.
• Evaluate portfolio companies for their exposure to AI-driven restructuring and automation, particularly in the technology and warehousing sectors, as this trend is a primary driver of current layoffs and future efficiency gains.
• Monitor the re-employment rate and overall hiring trends, as the lowest year-to-date hiring figures since 2011 suggest a more challenging environment for job seekers, potentially impacting broader economic stability.
• Consider the implications of these labor market shifts on monetary policy, as persistent job cuts may pressure the Federal Reserve to accelerate rate cuts beyond current expectations.