US DATA: Challenger Layoffs Surge To Highest October Since 2003 [1/2]

An earlier than scheduled release of the Challenger jobs report (link) has recorded a surge in job cut announcements in October to its highest for an October since 2003. The increase is driven by warehousing and tech with the press release citing cost-cutting and AI. 

• Challenger job cut announcements jumped 175% Y/Y to 153k in October, the highest for an October since 2003, having easily surpassed the 113k of Oct 2008 for a striking comparison.
• As opposed to the DOGE-induced surge in layoffs at the beginning of the year, government layoffs were only 8k in October.
• Instead, warehousing layoffs drove the rise with 48k vs 1.4k a year ago (“The surge suggests ongoing overcapacity and automation-driven restructuring following pandemic-era growth”), followed by tech layoffs at 33k vs 3.6k a year ago.
• Job cut announcements have summed to 1.1mn in the year to date for the highest outside of the pandemic since the 1.2mn in 2009, up from 664k in 2024 and 641k in 2023 for this time of year. Whilst these won’t correct for any announcements that then weren’t followed through with, it’s still a notable comparison.
• Ex-government layoffs meanwhile sum to 792k for a still sizeable increase from the 627k in 2024 and 640k in 2023. This is also the highest since 2009 outside of 2020.
• The Challenger press release on this comparison with Oct 2003: “That month, large announcements occurred in Retail due to acquisitions and in Telecommunication as cell phones gained wide adoption.” Today’s release for Oct 2025 sees “the highest total for a single month in the fourth quarter since 2008. Like in 2003, a disruptive technology is changing the landscape.”
• “Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes.”