United States Challenger Job Cuts

US-based employers announced 93,816 job cuts in May 2025, the lowest in four months, compared to 105,441 in April. The services sector cut the most jobs in May (22,492), the highest monthly total for the industry since May 2020, followed by retail (11,483) and health care/products (6,514). “Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies’ workforces. Companies are spending less, slowing hiring, and sending layoff notices,” said Andrew Challenger, Senior VP of Challenger, Gray & Christmas. Through May, employers have announced 696,309 job cuts, an 80% year-on-year increase. "DOGE Impact" remains the leading reason for job cut announcements in 2025, cited in 284,044 planned layoffs so far this year. This includes direct reductions to the Federal workforce and its contractors. Additionally, DOGE Downstream Impact, such as the loss of funding to private Non-Profits, was cited in another 10,459 cuts.