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The 2025 Challenger report headline is Highest Q4 Layoffs Since 2008; Lowest YTD Hiring Since 2010

U.S.-based employers announced 35,553 job cuts in December, down 50% from the 71,321 job cuts announced in November. It is down 8% from the 38,792 job cuts announced in the same month last year, according to a report released Thursday from global outplacement and executive coaching firm Challenger, Gray & Christmas.

December’s total is the lowest monthly total since 25,885 cuts were announced in July 2024. It is the lowest December total since 2023, when 34,817 cuts were announced. It is the fourth time this year job cuts were lower than the corresponding month one year earlier.

U.S.-based employers announced 35,553 job cuts in December, down 50% from the 71,321 job cuts announced in November. It is down 8% from the 38,792 job cuts announced in the same month last year, according to a report released Thursday from global outplacement and executive coaching firm Challenger, Gray & Christmas.

In 2025, employers announced 1,206,374 job cuts, an increase of 58% from the 761,358 announced in 2024. Annual job cuts are at the highest level since 2020 when 2,304,755 cuts were announced. It is the seventh highest annual total since 1989. 

In the fourth quarter, employers announced plans to cut 259,948, the highest fourth-quarter total since 2008 when 460,903 cuts were recorded. It is up 29% from the 202,118 cuts recorded in the third quarter of 2025 and up 71% from the 152,116 cuts recorded in the same quarter one year prior. It is the highest quarterly total since the first quarter of 2025 when 497,052 cuts were announced.

Seventh Highest Layoff Total in History

• 2020: 2,304,755
• 2001: 1,956,876
• 2002: 1,466,823
• 2009: 1,288,030
• 2003: 1,236,426
• 2008: 1,223,993
• 2025: 1,206,374

Optimism

“The year closed with the fewest announced layoff plans all year. While December is typically slow, this coupled with higher hiring plans, is a positive sign after a year of high job cutting plans,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.

I don’t agree with that optimism. October and November were huge months. December got better.

More importantly, it does not remotely match what corporate CEOs are saying (and doing). Check out some of the links below.

Related Posts

December 27, 2025: Only a Third of CEOs Plan to Hire Workers in 2026

66% will fire workers or play wait and see with AI.

January 7, 2026: ADP: White Collar Jobs Clobbered in 6 of the Last 7 Months

Professional and Business Services jobs are down five months and seven of last eight.

January 9, 2026: Nonfarm Payrolls Rise by 50,000 with 76,000 in Negative Revisions

2025 closed out with a thud. Here are the details.

Assuming there are no more negative revisions (and what is the likelihood of that), the year-over-year employment gain was just 610,000.

I expect the next benchmark revision to wipe that out. Thud!

The above post explains in much more detail the “experimental” benchmark revision series.

January 9, 2026: AI Is Killing Select White Collar Jobs. What’s Hot and What’s Not?

Private education and health accounted for over 100 percent of job gains in 2025.

BLS and ADP are in agreement over white collar jobs.

When the only job strength is in recession-proof health care, generally the economy is already in recession.

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