U.S. employers have announced 1,170,821 job cuts through November, a 54% increase from the same period last year and the highest level since 2020, according to data released by Challenger, Gray & Christmas.
For HR leaders facing pressure to reduce headcount, understanding what’s really driving cuts at other organizations provides critical context for those difficult conversations with leadership peers.
Job cuts aren’t dominated by AI
The top reasons companies cite for workforce reductions reveal that traditional business decisions far outweigh technology displacement. Artificial intelligence was cited for 54,694 layoff plans through November. While that represents a concrete data point on AI’s workforce impact, it accounts for less than 5% of total job cuts this year. This ranks far behind economic conditions, restructuring and government policy impacts.
Restructuring accounted for 128,255 cuts this year, while physical closings of stores, units or departments represented 178,531 reductions, according to the Challenger report. Translation: Companies are consolidating operations, closing underperforming locations and reorganizing business units. These are decisions that would be happening regardless of technology needs.
Yet November 2025 saw 71,321 job cuts, up 24% from November 2024 and the highest November total since 2022.
Andy Challenger, Challenger, Gray & Christmas
