According to a new report from Challenger, Grey & Christmas, the number of job cuts that were announced during the first five months of 2025 was eighty percent higher than the number of job cuts that were announced during the same period the previous year.
There have been approximately 696,000 job cuts announced by employers through the month of May. That number was slightly higher than 385,000 in the year 2024.
According to the report, the number of unemployment claims is only 65,000 short of reaching the total for the entire year of 2024.
“Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies’ workforce,” said Andrew Challenger, senior vice president of Challenger, Grey & Christmas, in the report. This is putting a strain on the workforce of business organisations. “Companies are spending less, slowing hiring, and sending layoff notices.”
Based on the findings of the report, the Department of Government Efficiency (DOGE) initiatives are the primary reason for the announcement of job cuts in the year 2025.
This includes layoffs in the federal government, contractors, and private nonprofit organisations that were brought about by reductions in federal funding and the termination of contracts.
In addition, the report cited the current state of the economy and the market as a reason for the increased number of layoffs.
In addition, the report stated that the number of job cuts in the retail sector has reached 76,000 for the year, making it the second-highest industry for job cuts after the federal government. Furthermore, the report stated that retail job cuts accounted for a staggering 274% increase over the year 2024.
The closure of stores was a contributing factor in the loss of jobs. Some retailers were forced to close their locations as a result of economic pressures, while others were forced to file for bankruptcy and completely cease operations.
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In the year 2025, well-known department store retailers like JCPenney and Macy’s have announced that they will be closing their stores. As it continues to wind down its business, the fashion retailer Forever 21 has announced that it will be closing hundreds of stores.
The primary reason for this decision is the competition that it faces from Shein and Temu. The announcements of closures were also made by Rite-Aid, Walgreens, and Party City.
In February, the craft retailer Joann made the announcement that it would be closing all of its stores as a result of its second bankruptcy filing within the span of one year.
In the past, the store, which was well-known for the variety of fabrics it offered, had over 800 locations across the United States. By the end of May, the company had closed all of its remaining stores, which was a direct result of its most recent bankruptcy filing.
