A recent report from Challenger, Gray & Christmas reveals that the number of job cuts announced in the first five months of 2025 has surged by 80% compared to the same timeframe last year.
Approximately 696,000 jobs have been slated for elimination through May, a significant jump from just over 385,000 during the same period in 2024. Strikingly, the total for employment cuts this year already equals the annual sum for last year, which was around 65,000.
Andrew Challenger, a senior vice president at Challenger, attributed this wave of layoffs to factors like tax changes, funding reductions, consumer spending trends, and general economic unease. “These elements are applying intense pressure on the workforce,” he noted. “Companies are tightening budgets, halting hiring, and issuing layoff notices.”
The report points to initiatives by the Ministry of Government Efficiency (DOGE) as a primary driver behind the job losses in 2025. These initiatives have affected federal employment, contractors, and non-profits, mainly due to funding cuts and program terminations.
Market conditions and economic uncertainty were also cited as contributing factors to the increase in layoffs.
In the retail sector, job cuts reached 76,000, making it the second-highest industry for layoffs, following the federal government, which has seen a staggering 274% rise in layoffs since 2024. Many stores have shuttered due to economic challenges, while some retailers have gone bankrupt, leading to complete closures of their operations.
Notably, well-known department stores like JCPenney and Macy’s have announced store closures in 2025.
Fashion retailer Forever 21 has revealed plans to close hundreds of stores, attributing this decision to stiff competition from brands like Shein and Temu.
Other companies facing closures include Rite-Aid, Walgreens, and Party City.
Before its latest bankruptcy filing, craft retailer Joanne announced in February that it would close all locations. Notably, Joanne, known for its diverse fabric offerings, previously operated over 800 stores across the U.S., but all remaining stores were shut down by the end of May.
