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Annual Layoffs Hit Highest Level Since 2020

Annual Layoffs Hit Highest Level Since 2020

Summary

Total layoffs in the U.S. during 2025 reached the highest number since 2020, with big cuts across various sectors like government and technology. Although layoffs slowed down in December, 2025 had the worst fourth quarter for layoffs since 2008, with significant job reductions especially in government roles.

Key Facts

  • U.S. employers announced 1.2 million layoffs in 2025, the highest since 2020.
  • December saw 35,553 layoffs, lower than in November and a year earlier.
  • 2025 had the worst fourth quarter for layoffs since 2008, with 259,948 job cuts.
  • Government roles saw the highest layoffs, primarily due to federal government actions.
  • Technology sector layoffs increased by 15% to 154,445 in 2025.
  • Retail industry layoffs more than doubled compared to 2024, partly due to shifts towards online shopping.
  • The unemployment rate increased to 4.6% in November 2025.

Source Information