U.S. Layoffs in October Reach 22-Year High

Record Numbers of Layoffs in the U.S.

The consulting firm Challenger, Gray & Christmas has released its latest report for October. According to this report, U.S.-based employers announced a total of 153,074 layoffs in October. This figure represents a %175 increase year-on-year, marking the highest number of layoffs for the month of October since 2003.

In the January-October period of 2023, the number of layoffs reached 1,099,500, an increase of %65 compared to the same period last year. As of October, the highest ten-month layoff figures since 2020 have been recorded.

Planned Hiring Decreases

Additionally, the number of layoffs announced this year has already exceeded %44 of the total layoffs expected for the year 2024.

As of October, layoffs increased significantly across sectors; in the technology sector, there was a %17 rise to 141,159 layoffs, in retail, a %145 increase to 88,664, and in the media sector, a %26 increase to 16,680 workers laid off.

Reasons for Layoffs

The primary reason for layoffs was related to the Department of Government Efficiency (DOGE), while market and economic conditions were the second largest factor. As of the end of October, the total number of planned hires declined by %35 compared to the same period last year, falling to 488,077, which is recorded as the lowest ten-month level since 2011.

Disruptive Technologies and the Future

Andy Challenger, Senior Vice President of Challenger, Gray & Christmas, noted that layoffs are significantly above the norm, stating, "Many sectors are entering a correction process in the context of the post-pandemic employment boom. Additionally, the widespread adoption of artificial intelligence applications, decreasing consumer and corporate spending, along with rising costs, are triggering workforce reductions. This situation could further challenge the labor market," he said.