US companies are letting go of employees at a rapid clip. Layoffs have surpassed 1 million this year — the most cuts since 2020 — new data from consulting firm Challenger, Gray & Christmas showed Thursday.
Job losses last month were the highest since early 2023, ADP reported. Large employers grappling with tariffs, AI, and pandemic-era overhiring have announced massive cuts throughout 2025, but small businesses are now leading the payroll pullback, Bloomberg noted.
The cooling labor market bolsters the US Federal Reserve’s likely decision to trim interest rates next week, though sticky inflation complicates that call.
