Last month, layoffs jumped almost 40%, with 85,979 positions cut, according to a recent study.
A report released on Thursday by the consulting firm Challenger, Gray & Christmas indicated that these job cuts, particularly impacting the drug, finance, and retail sectors this year, are likely connected to some of the policies enacted by Trump since he took office in January.
According to the analysis, employers have made 892,362 job cuts in 2025 alone.
Experts suggest that the White House’s focus on government efficiency and reductions among federal workers may be contributing to these layoffs. Notably, “Doge Actions” have been identified as the primary reason for layoffs and hiring reductions so far this year.
“After the effects of DOGE on the federal landscape, employers are citing economic and market factors as key drivers for layoffs,” remarked Andrew Challenger, a senior vice president and worker expert. “This year, we’ve also witnessed a spike in layoffs due to business closures and bankruptcies.”
The pharmaceutical sector saw the highest number of layoffs, totaling 19,111, while the financial industry experienced 18,092 job cuts, marking significant losses last month.
“Economic uncertainty and market fluctuations have pressured financial companies, often tightening budgets,” Challenger noted.
Retail has also been heavily impacted, with 83,656 jobs eliminated by August, representing a staggering 242% increase from 24,489 cuts reported in the same timeframe last year. Challenger pointed to Trump’s tariff policies as a significant factor potentially exerting ongoing influence throughout the year.
“Retailers are facing challenges from tariffs, inflation, and persistent economic uncertainty, leading to bankruptcies and closures,” he explained. “If tariffs and consumer spending issues persist, we may see fewer seasonal jobs as the holiday shopping season approaches, along with higher levels of layoffs.”
Interestingly, Challenger mentioned that seasonal employment often tends to bounce back in September.
“With the layoffs we’ve seen in August, it might be an ominous indicator,” he added.
