Layoffs jumped nearly 40 percent in August, with U.S. employers cutting 85,979 jobs — the sharpest August decline since the height of the COVID-19 pandemic in 2020, according to new data released Thursday by Challenger, Gray & Christmas.
The consulting firm’s report linked much of the surge in layoffs to ripple effects from President Trump’s policies since returning to office in January, particularly the sweeping federal workforce cuts implemented by the Department of Government Efficiency (DOGE). Analysts noted that “DOGE actions” have been the top reason cited for layoffs across sectors in 2025 so far.
Altogether, U.S. employers have announced 892,362 cuts this year, the highest total since 2020, when nearly 2 million jobs were eliminated from January to August during the pandemic downturn. After DOGE-driven reductions, the report listed economic and market uncertainty, bankruptcies, and operational shutdowns as the next biggest drivers of layoffs.
The hardest-hit sectors in August were pharmaceuticals, which lost 19,111 jobs, and financial services, with 18,092 cuts. “Economic uncertainty and market volatility have increased pressure on companies in finance to tighten belts,” said Andrew Challenger, the firm’s senior vice president.
Retailers have also been badly affected this year, with 83,656 layoffs through August — a 242 percent increase compared with 2024. Analysts pointed to Trump’s tariff policies, inflation, and shaky consumer spending as key stressors. Challenger warned that if these conditions persist, the upcoming holiday season may bring not only fewer seasonal hires but potentially more layoffs.
The report also highlighted weak hiring trends. August marked the lowest level on record for planned hiring announcements, raising concerns about what’s ahead. Challenger said seasonal hiring usually picks up in September, but this year could be different. “Coming off the lowest August on record for hiring plans, it may be a troubling sign,” he noted.
Layoffs jumped nearly 40 percent in August, with U.S. employers cutting 85,979 jobs — the sharpest August decline since the height of the COVID-19 pandemic in 2020, according to new data released Thursday by Challenger, Gray & Christmas.
The consulting firm’s report linked much of the surge in layoffs to ripple effects from President Trump’s policies since returning to office in January, particularly the sweeping federal workforce cuts implemented by the Department of Government Efficiency (DOGE). Analysts noted that “DOGE actions” have been the top reason cited for layoffs across sectors in 2025 so far.
Altogether, U.S. employers have announced 892,362 cuts this year, the highest total since 2020, when nearly 2 million jobs were eliminated from January to August during the pandemic downturn. After DOGE-driven reductions, the report listed economic and market uncertainty, bankruptcies, and operational shutdowns as the next biggest drivers of layoffs.
The hardest-hit sectors in August were pharmaceuticals, which lost 19,111 jobs, and financial services, with 18,092 cuts. “Economic uncertainty and market volatility have increased pressure on companies in finance to tighten belts,” said Andrew Challenger, the firm’s senior vice president.
Retailers have also been badly affected this year, with 83,656 layoffs through August — a 242 percent increase compared with 2024. Analysts pointed to Trump’s tariff policies, inflation, and shaky consumer spending as key stressors. Challenger warned that if these conditions persist, the upcoming holiday season may bring not only fewer seasonal hires but potentially more layoffs.
The report also highlighted weak hiring trends. August marked the lowest level on record for planned hiring announcements, raising concerns about what’s ahead. Challenger said seasonal hiring usually picks up in September, but this year could be different. “Coming off the lowest August on record for hiring plans, it may be a troubling sign,” he noted.