October Layoffs Were the Worst Since 2003 and Hit Tech Workers Hard

Many people are feeling that the economy isn’t doing so well right now. Unfortunately, due to the government shutdown, we lack official economic data that could provide clear statistical insight into this sentiment. However, private firms are increasingly releasing their own economic analyses, and much of the time, the news isn’t favorable for American workers.

A new report reveals that October was a particularly brutal month for the U.S. workforce—especially within the tech industry. The analysis, from career transition services firm Challenger, Gray & Christmas, shows that last month was the worst October for job cuts in decades.

According to the report, U.S. employers announced 153,074 job cuts in October, marking a 175% increase from the 55,597 cuts announced in October 2024. This figure is also up 183% compared to the 54,064 job cuts announced just one month prior. That’s a significant and concerning jump.

The tech sector has been hit especially hard. Technology continues to lead in private-sector job cuts as companies restructure amid AI integration, slower demand, and efficiency pressures. In October alone, the tech industry announced 33,281 job cuts—sharply up from 5,639 in September.

For the year so far, technology firms have announced 141,159 job cuts, a 17% increase from the 120,470 cuts reported through the same period in 2024. These numbers underline a challenging environment for tech workers and the broader industry.

“This is the highest total for October in over 20 years, and the highest total for a single month in the fourth quarter since 2008,” the report states. “Like in 2003, a disruptive technology is changing the landscape.”

Andy Challenger, workplace expert and chief revenue officer at Challenger, Gray & Christmas, commented on the trend: “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.”

He added, “Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market.”

Overall, the data paints a tough picture for workers, especially in tech, as companies navigate rapid changes and economic pressures.
https://gizmodo.com/october-layoffs-were-the-worst-since-2003-and-hit-tech-workers-hard-2000682936