In October, the number of layoffs at Challenger companies in the U.S. surged by 175% year-over-year, with the total layoffs for the year increasing by 65% compared to the previous year.

Gold Ten Data, November 6: In October, U.S. Challenger job cuts totaled 153,074, a 175% increase compared to 55,597 in the same period last year. This is also a 183% rise from 54,064 in the previous month. Andy Challenger, Chief Revenue Officer at Challenger, said, “The pace of layoffs in October was well above the monthly average. Some industries are adjusting after the hiring surge during the pandemic, but at the same time, the widespread adoption of AI, slowing consumer and business spending, and rising costs are prompting companies to tighten budgets and freeze hiring. Employees laid off now find it increasingly difficult to find new jobs, which could further loosen the labor market.”

As of the end of October, employers announced layoffs totaling 1,099,500 this year, a 65% increase year-over-year. This is also 44% higher than the 761,358 layoffs projected for all of 2024. The total number of layoffs from the beginning of the year to now has reached its highest level since 2020, when a total of 2,304,755 layoffs were recorded through October.