American employers announced the highest number of October layoffs since 2003 – with artificial intelligence (AI) a major factor, according to a new report.
The report from global outplacement and executive coaching firm Challenger, Gray & Christmas cited more than 153,000 layoffs in October, up 183% from September.
“Year-to-date job cuts are at the highest level since 2020 when 2,304,755 cuts were announced through October,” reads the report.
The two biggest drivers of 2025 job cuts are what the report dubbed the “DOGE Impact” – reductions to the federal workforce and its contractors led by the Department of Government Efficiency (DOGE) – and AI as companies restructure and automate.
The DOGE impact “remains the leading reason for job cut announcements in 2025,” accounting for nearly 294,000 layoffs this year including those impacting federal workers and contractors, the report said. “An additional 20,976 cuts have been attributed to DOGE Downstream Impact, which reflects the loss of federal funding to private and non-profit entities,” it added.
Since taking office in January, the Trump administration has ordered reductions in force resulting in thousands of layoffs and directed agencies to review contracts for efficiency.
In October specifically, employers cited cost-cutting as the top reason for job cuts, while noting AI as the second-largest factor, responsible for more than 31,000 job losses.
Recent congressional reports estimate AI could displace up to 100 million jobs over the next decade, spurring congressional concern and calls for regulation of the technology to prevent major impacts on the American workforce.
This week, Sens. Mark Warner, D-Va., and Josh Hawley, R-Mo., introduced legislation requiring federal agencies and large companies to report layoffs tied to AI-related changes, including any AI-driven hiring or retraining efforts.