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The number of job cuts announced in the first five months of 2025 increased 80% from the same period the prior year, according to a new report from Challenger, Gray & Christmas.
Employers have announced approximately 696,000 job cuts through May. In 2024, that number was just over 385,000. According to the report, job cuts are only 65,000 away from matching the total for all of 2024.
"Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies’ workforce," said Andrew Challenger, senior vice president of Challenger, Gray & Christmas, in the report. "Companies are spending less, slowing hiring, and sending layoff notices."
CRAFTS RETAILER TO CLOSE ALL REMAINING STORES THIS WEEK
Efforts initiated by the Department of Government Efficiency (DOGE) are the leading reason for job cut announcements in 2025, according to the report. That includes federal government jobs, contractors and private nonprofit layoffs prompted by federal funding cuts and terminated contracts.
White House Senior Advisor Elon Musk walks to the White House after landing in Marine One on the South Lawn with U.S. President Donald Trump. (Photo by Samuel Corum/Getty Images / Getty Images)
The report also cited economic and market conditions as a reason for increased layoffs. Additionally, the report said that retail job cuts closed in on 76,000 for the year, marking the second-highest industry for job cuts behind the federal government, and accounted for a whopping 274% increase over 2024.
A "Store Closing" sign displayed outside a Joann store in Savannah, Georgia, on April 12, 2025. (Parker Puls/Bloomberg via Getty Images / Getty Images)
Store closures contributed to job losses, with some retailers closing locations amid economic pressures, and others forced to file for bankruptcy and shut down operations entirely.
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Shoppers exit a Macy's department store in Las Vegas, Nevada, on Sunday, Nov. 7, 2021. (Bridget Bennett/Bloomberg via Getty Images / Getty Images)
Well-known department store retailers such as JCPenney and Macy’s announced store closures in 2025. Forever 21, a fashion retailer, announced the closure of hundreds of stores as it winds down its business, primarily due to competition from Shein and Temu. Rite-Aid, Walgreens and Party City also announced closures.
Craft retailer Joann announced in February it would close all its stores following its second bankruptcy filing within one year. The store, famous for its assortment of fabrics, once operated over 800 locations in the U.S. All of its remaining stores, following its latest bankruptcy filing, closed by the end of May.
