Mass layoffs in the United States are reaching record levels, driven by the active implementation of artificial intelligence (AI) technologies and the need to cut costs. This was reported by Bloomberg journalists, citing data from Challenger, Gray & Christmas Inc.
Last month, there was a significant increase in the number of layoffs: 153,074 people lost their jobs, marking the highest figure for October in the last twenty years. For comparison, this number is nearly three times higher than the figures from October 2024, with the largest number of layoffs affecting the IT sector and warehousing.
According to the Challenger report, some industries are gradually recovering from the record hiring levels caused by the pandemic. However, this is occurring against the backdrop of increasing AI implementation, declining consumer and corporate spending, and rising costs, leading to reduced hiring and the need for savings.
Since the beginning of the year, the number of layoffs has exceeded one million, the highest figure since the start of the pandemic. Additionally, the number of new job openings offered by employers has reached its lowest level since 2011. This information contradicts recent statements by Federal Reserve Chairman Jerome Powell, who claimed that there are only "gradual changes" in the labor market.
According to Reuters, in September, there were announcements of more than 25,000 layoffs in the USA, and earlier this year, UPS announced plans to lay off nearly 50,000 employees. Europe is also experiencing an increase in layoffs, exceeding 20,000.
