Topline
American employers have already cut more jobs this year than in all of 2024, a new report showed Thursday, following cuts to federal government jobs, artificial intelligence and President Donald Trump’s tariffs.
Private and public employers cut 62,000 jobs in July, according to a report from career services firm Challenger, Gray & Christmas, an almost 30% increase from the month before and a 140% spike over the same month last year.
More than 806,000 jobs have been cut to date in 2025, already above the 761,358 that were eliminated in all of 2024.
The Department of Government Efficiency's cuts to federal agencies and grants, as well as implementation of artificial intelligence and concerns over Trump's tariffs, are largely responsible for the cuts, according to Andrew Challenger, senior vice president and labor expert for Challenger, Gray & Christmas.
The government has cut 292,294 jobs this year—the leading sector in job reductions by far—followed by technology at 89,251 and 80,487 job cuts in retail.
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The Challenger report says so-called "DOGE impact" is the leading reason for job cut announcements so far in 2025. President Donald Trump initiated the biggest singular cut to jobs in U.S. history early this year when he offered more than 2 million people a buyout. Roughly 65,000 people had accepted the offer within two weeks, while 24,000 cuts were made in the U.S. Army and 10,000 in the Veterans Affairs department, among thousands of others. In addition to the direct cuts to the federal workforce, DOGE cuts to grant funding have also led to 17,826 cuts in the non-profit sector so far this year, up 413% from this time in 2024, Challenger said. Non-profit organizations have cited mounting challenges from reductions in federal funding, rising operational costs and persistent economic uncertainty.
Technology is the leading private sector in job cuts, with 89,251 eliminated in 2025 so far. Challenger says the advancement of artificial intelligence and ongoing uncertainty surrounding work visas have contributed to workforce reductions, which are up 36% in the sector over the same time period last year. So far in 2025, companies that have undergone large-scale layoffs so far this year include Intel (21,000), Microsoft (15,000 across two rounds of layoffs), PayPal (2,500) and HP (2,000).
The retail and automotive sectors have seen an increase in layoffs as the result of global tariffs implemented by the Trump administration. Retail announced 80,487 job cuts in July, up 249% through this time in 2024, citing tariffs, inflation and ongoing economic uncertainty. Auto makers have cut 16,883 jobs this year, down from last year, and primarily cited tariffs for the losses as well as fluctuations in production demand, supply chain disruptions and increased operational costs
U.S. companies have said they plan to hire 86,132 people so far this year, up from the 73,596 through the same period in 2024, Challenger reports. The entertainment and leisure sector is responsible for nearly a third of the hiring plans, which Challenger says could reflect a rebound in seasonal and service-related roles. Insurance employers have planned 12,800 hires and the automotive sector has also announced 6,161 new jobs. Hiring is down year-over-year in the technology, construction, industrial goods and energy sectors.
Friday’s jobs report. The unemployment rate dipped to 4.1% in June after sitting at 4.2% from March to May, according to the latest data. Job growth was 37% lower in the first half of 2025 compared to 2024.