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

A lot of people can feel that the economy isn’t doing so hot right now. Unfortunately, due to the government shutdown, we don’t have much in the way of official economic data to give statistical clarity to that feeling. However, more and more, private firms are releasing their economic analysis, and, much of the time, it doesn’t bode well for the American worker.

Now, a new report shows that this October was a particularly brutal month for the U.S. workforce—and it was especially bad for the tech industry. The analysis, from career transition services firm Challenger, Gray & Christmas, shows that this past month was the worst in decades. The report states that U.S. employers announced some “153,074 job cuts in October, up 175% from the 55,597 cuts announced in October 2024. It is up 183% from the 54,064 job cuts announced one month prior.â€

Yikes, that’s a lot. And the cuts have been especially deep for Silicon Valley:

Technology continues to lead in private-sector job cuts as companies restructure amid AI integration, slower demand, and efficiency pressures. In October, the sector announced 33,281 job cuts, up sharply from 5,639 in September. For the year, Technology firms have announced 141,159 job cuts, up 17% from the 120,470 announced through the same period in 2024.

Yeah, that’s bad. That is not good at all. There’s no real way to spin that as good. “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.â€

“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,†said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas. “Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market.â€

We’ve already written about the huge layoffs that impacted the tech industry last month—including some 14,000 people who used to be (but are no longer) employed with Amazon. The exact reason for why tech companies are shedding jobs right now is still up in the air. One narrative attributes the layoffs to the rise of AI, but other commentators have noted that it could be much more mundane economic/business factors that are squeezing the industry like a lack of growth in non-AI sectors and tariff policy eating away at profits while making it difficult to plan for the future.