HOW MANY JOB CUTS IS DOGE RESPONSIBLE FOR?
The Challenger report says so-called “DOGE impact” is the leading reason for job cut announcements so far in 2025. President Donald Trump initiated the biggest singular cut to jobs in U.S. history early this year when he offered more than 2 million people a buyout. Roughly 65,000 people had accepted the offer within two weeks, while 24,000 cuts were made in the U.S. Army and 10,000 in the Veterans Affairs department, among thousands of others. In addition to the direct cuts to the federal workforce, DOGE cuts to grant funding have also led to 17,826 cuts in the non-profit sector so far this year, up 413% from this time in 2024, Challenger said. Non-profit organizations have cited mounting challenges from reductions in federal funding, rising operational costs and persistent economic uncertainty.
HOW IS AI AFFECTING JOB CUTS?
Technology is the leading private sector in job cuts, with 89,251 eliminated in 2025 so far. Challenger says the advancement of artificial intelligence and ongoing uncertainty surrounding work visas have contributed to workforce reductions, which are up 36% in the sector over the same time period last year. So far in 2025, companies that have undergone large-scale layoffs so far this year include Intel (21,000), Microsoft (15,000 across two rounds of layoffs), PayPal (2,500) and HP (2,000).
HOW HAVE TARIFFS IMPACTED JOB CUTS?
The retail and automotive sectors have seen an increase in layoffs as the result of global tariffs implemented by the Trump administration. Retail announced 80,487 job cuts in July, up 249% through this time in 2024, citing tariffs, inflation and ongoing economic uncertainty. Auto makers have cut 16,883 jobs this year, down from last year, and primarily cited tariffs for the losses as well as fluctuations in production demand, supply chain disruptions and increased operational costs
CONTRA
U.S. companies have said they plan to hire 86,132 people so far this year, up from the 73,596 through the same period in 2024, Challenger reports. The entertainment and leisure sector is responsible for nearly a third of the hiring plans, which Challenger says could reflect a rebound in seasonal and service-related roles. Insurance employers have planned 12,800 hires and the automotive sector has also announced 6,161 new jobs. Hiring is down year-over-year in the technology, construction, industrial goods and energy sectors.
WHAT TO WATCH FOR
Friday’s jobs report. The unemployment rate dipped to 4.1% in June after sitting at 4.2% from March to May, according to the latest data. Job growth was 37% lower in the first half of 2025 compared to 2024.