The Blubber

In May, companies announced a total of 93,816 job cuts—12% fewer than the 105,441 layoffs reported in April—but a sharp 47% increase from the 63,816 cuts recorded in May of last year, according to a report from Challenger, Gray & Christmas released Thursday.

“Tariffs, funding reductions, a slowdown in consumer spending, and growing economic pessimism are all placing significant pressure on workforces,” commented Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas. “As a result, companies are tightening their budgets, decelerating hiring efforts, and issuing layoff notifications.”

May Job Cuts by Industry

• Services: This sector—including commercial cleaning and temporary staffing firms—announced 22,492 cuts in May, marking its largest monthly total since May 2020 (34,229 cuts). Year-to-date, the sector has declared 44,273 layoffs, up 79% from 24,770 during the same period in 2024.
• Retail: Retailers planned 11,483 layoffs in May, bringing the year-to-date total to 75,802. This represents a drastic 274% increase from the 20,276 retail layoffs recorded through May 2024, making it the second-most affected sector, behind only the public sector.
• Technology: The tech industry continues to face rapid disruptions, with 10,598 layoffs announced in May. Through May, technology firms have reported 74,716 cuts, a 35% rise from the 55,207 in the same timeframe last year.
• Non-Profits: Non-profit organizations, impacted by federal funding cuts, rising costs, and economic uncertainty, announced 8,565 layoffs in May. They have totaled 14,018 cuts this year—a 504% increase from 2,320 by May 2024.
• Media and News: The broader Media sector reported 4,107 cuts in 2025, a 51% drop compared to 8,410 in the first five months of 2024. Within that, the News sub-sector (including broadcast, digital, and print) recorded 1,035 cuts, a 54% reduction from 2,239 earlier in the previous year.

Year-to-Date Trends

From January through May, employers have announced a cumulative total of 696,309 layoffs—an 80% increase compared to 385,859 in the same period last year. With the full-year total just 65,049 cuts shy of the total layoffs reported for all of 2024, this suggests 2025 is on track to surpass last year’s figures significantly.

Drivers Behind the Layoffs

• DOGE Impact: Accounting for 284,044 planned layoffs so far in 2025, this category—including cuts affecting federal government employees and contractors—has been the most frequently cited reason. A related category, DOGE Downstream Impact (such as reduced funding to non-profits), added another 10,459 cuts.
• Market and Economic Conditions: The second-most-cited reason, market and economic pressures have contributed to 131,257 layoffs year-to-date.
• Closures: Temporary or permanent shutdowns of stores, units, or plants have led to 94,439 workforce reductions so far this year.

This data underscores the increasing severity of cost-cutting across industries, fueled by economic headwinds, funding constraints, and lingering geopolitical pressures.