US sees highest layoffs since COVID

In July 2025, U.S. employers announced 62,075 job cuts, a 140% spike from July 2024’s 25,885, per Challenger, Gray & Christmas. This marks the highest monthly layoffs since the COVID-19 crisis. The federal government, under Trump’s Department of Government Efficiency (DOGE), slashed 292,294 jobs this year, impacting agencies and nonprofits reliant on public funds.

AI drove over 10,000 cuts in July alone, with tech firms like Microsoft citing automation for 9,000 layoffs. Retail suffered 80,487 cuts due to tariffs and reduced consumer spending. “We are seeing the federal budget cuts implemented by DOGE impact nonprofits and health care,” said Andrew Challenger. Despite a 4.2% unemployment rate, middle-management and specialized roles face prolonged joblessness.