Although layoff announcements from U.S. companies fell by 53% from October to November, job cuts were still up 24% year-over-year, driven by widespread restructuring efforts, the implementation of artificial intelligence, and less-than-ideal economic conditions.

According to a report released by outplacement firm Challenger, Gray & Christmas (CG&C) on December 4, U.S.-based employers announced a total of 71,321 job cuts in November, marking the highest total for that month since 2022. That was the eighth time so far in 2025 that layoffs were higher than the corresponding month the year prior. Year-to-date through November, U.S. employers have announced more than 1.1 million layoffs, up 54% from that same period last year. Job cuts over that period were also at their highest since 2020, when the pandemic fueled over 2.2 million cuts in the first 11 months of the year.

While layoff plans falling between October and November represented something of a "positive sign" for the U.S. job market, that was likely driven more by the poor optics of announcing job cuts close to Thanksgiving and Christmas, CG&C chief revenue officer Andy Challenger cautioned.

“It (used to be) the trend to announce layoff plans toward the end of the year, to align with most companies’ fiscal year-ends," Challenger said. "It became unpopular after the Great Recession especially, and best practice dictated layoff plans would occur at times other than the holidays."

Restructuring was the most common reason cited for layoffs in November 2025, at 28.3%, followed by market and economic conditions, at 22%, and AI, at 8.8%. The telecommunications industry accounted for the largest share of job cuts by industry, at 21.2%, due in large part to Verizon laying off 13,000 employees in late November.