For years, the American dream for many young people was written in code—literally. High school counselors, tech evangelists, and even parents would urge, "Learn to code!" as the surest path to a stable, future-proof career. But as 2025 draws to a close, that promise has unraveled for thousands. According to a new report from Challenger, Gray & Christmas, the U.S. is witnessing a wave of layoffs that rivals some of the bleakest periods in recent memory, with the tech industry at the epicenter.
October 2025 was a bloodbath for American workers, especially those in technology. The analyst firm Challenger, Gray & Christmas reported 153,074 layoffs across all sectors in the U.S. during the month—a staggering 183 percent jump from September, as highlighted by Truthout. That figure marks the highest number of October layoffs in over two decades, not seen since 2003. The tech industry alone accounted for 33,281 layoffs, up sharply from just 5,639 in September, according to Futurism and SF Gate. In fact, tech job cuts in October were the highest since the early days of the COVID-19 pandemic in 2020, and the highest for any single month since 2003.
It’s not just a blip. From January through October, the nation saw around 1.1 million layoffs, a 65 percent increase over the same period in 2024, as reported by Truthout and Challenger, Gray & Christmas. Tech companies, in particular, have planned to cut 141,159 jobs so far in 2025, compared to 120,470 over the same stretch last year. Major employers like Amazon, UPS, Target, and Microsoft have all announced significant job cuts. Amazon alone slashed some 14,000 corporate positions in early November, following Microsoft’s summer layoffs of 9,000 employees.
What’s causing this tidal wave of pink slips? The explanations are as complex as the algorithms running Silicon Valley’s latest AI experiments. While the rise of artificial intelligence is a convenient scapegoat, it’s not the sole culprit. According to the Challenger, Gray & Christmas report, "October’s pace of job cutting was much higher than average for the month. 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." Andy Challenger, chief revenue officer at the firm, added, "Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market."
Indeed, AI adoption was the second most cited reason for job cuts in October, with a reported 31,039 layoffs linked to artificial intelligence. The top reason remained cost cutting, accounting for 48,414 job losses. The Department of Government Efficiency (DOGE), a government initiative aimed at trimming federal waste, was the leading overall cause in 2025, with 293,753 planned layoffs so far—including 20,976 attributed to "DOGE Downstream Impact," or the ripple effects of reduced federal funding on private and nonprofit sectors, as detailed by Challenger, Gray & Christmas.
The sectors hit hardest in October included technology, retail, services, warehousing, consumer products, non-profits, media, and news. For many, the pain is compounded by the time of year: companies have traditionally avoided large layoffs in the fourth quarter, wary of the bad optics of firing employees just before the holidays. Yet, as Andy Challenger observed, "At a time when job creation is at its lowest point in years, the optics of announcing layoffs in the fourth quarter are particularly unfavorable." Nevertheless, the economic pressures have proven too great for many firms to ignore.
Adding insult to injury, the hiring outlook is equally grim. October brought the lowest figure for seasonal hiring plans—just 372,520—since Challenger began tracking them in 2012. Year-to-date, U.S. employers announced only 488,077 planned hires, the lowest since 2011 and down 35 percent from the 750,333 announced by this point last year. Hopes for a holiday hiring surge have all but evaporated. As the Challenger, Gray & Christmas report put it, "It’s possible with rate cuts and a strong showing in November, companies may make a late-season push for employees, but at this point, we do not expect a strong seasonal hiring environment in 2025."
Economic storm clouds are gathering elsewhere, too. Nearly half of U.S. states—representing about a third of the nation’s gross domestic product—are either in a recession or teetering on the brink, according to Moody’s Analytics, as cited by Truthout. A recent Economist/YouGov poll found that most Americans are deeply pessimistic about the economy: only 4 percent rated it as "excellent," while 39 percent called it "poor." Some 54 percent said things are getting worse, versus just 21 percent who believe the economy is improving.
Despite these indicators, President Donald Trump has continued to tout what he describes as a "booming" economy. In a recent Truth Social post, he wrote, "Our Economy is BOOMING," a statement at odds with the lived experience of many Americans facing layoffs and dwindling job prospects.
For those who have lost their jobs, the road ahead is daunting. The Challenger, Gray & Christmas report warns that "those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market." The labor market’s resilience, so often cited as a bright spot in recent years, is now showing signs of strain. ADP’s recent jobs report for October described a tepid rebound, with growth limited to education, health care, and trade sectors, while employers continued to shed jobs in professional business services, information, and leisure and hospitality.
Meanwhile, the narrative that AI is poised to replace thousands of workers remains hotly debated. While tech executives have promoted AI as a tool for efficiency, there’s reason to doubt its ability to deliver the promised gains—at least so far. As Futurism noted, "AI is mostly failing when used to improve revenue streams, the reason companies execute these layoffs in the first place." Some layoffs, especially at companies like Amazon, are clearly the result of pandemic-era over-hiring rather than any sudden leap in AI capability.
Still, for the millions who heeded the call to "learn to code," the current landscape feels like a betrayal. The very companies that once begged for more engineers and developers are now leading the way in job cuts, citing the same technology that was supposed to secure their futures.
As 2025 winds down, the U.S. faces a labor market under intense strain from multiple directions: technological disruption, economic uncertainty, and shifting corporate priorities. The coming months will test the resilience of both workers and the broader economy, as Americans grapple with the realities behind the headlines and search for a new path forward.
