US job cuts fall sharply in June

US-based employers announced 47,999 job cuts in June 2025, marking the lowest monthly total so far this year, according to the latest report from Challenger, Gray & Christmas. This figure represents a sharp decline from 93,816 layoffs in May and is marginally lower than the 48,786 cuts announced in June 2024, suggesting a momentary cooling in layoff activity as some sectors show signs of stabilization.

Andrew Challenger, Senior Vice President at Challenger, Gray & Christmas, noted that "the bulk of companies cited economic conditions last month," pointing to a still-fragile macroeconomic backdrop.

He added, "We saw some DOGE activity and have tracked over 2,000 jobs directly attributed to tariffs this year, but for the most part it was a quiet June." The reference to DOGE activity—likely shorthand for "Downsizing of Government or Enterprises" or potentially a company-specific event—highlights isolated pockets of disruption, even amid a broader slowdown in layoff announcements.

Despite the monthly reprieve, the second quarter as a whole painted a more sobering picture. A total of 247,256 job cuts were announced in Q2 2025, making it the highest second-quarter tally since the 1,238,364 layoffs recorded in Q2 2020, during the height of the pandemic-driven labor shock.

This latest quarterly figure represents a 39% increase compared to the 177,391 cuts announced in Q2 2024, underlining the persistent strain in several industries, including tech, retail, and manufacturing.

However, Q2’s layoff volume was down by 50% from the 497,052 cuts recorded in Q1 2025, suggesting that while economic uncertainties persist, the most aggressive phase of workforce reduction may have already passed.

The sharp quarter-over-quarter drop may reflect improved earnings outlooks, easing input costs, and better inventory alignment across key sectors, encouraging firms to pause or slow down restructuring initiatives.

The data reveals a complex labor market landscape: While job cuts have eased from their early-year highs, the overall level of dismissals remains historically elevated compared to pre-pandemic norms. Geopolitical uncertainties, tariff-related trade disruptions, and cautious corporate spending continue to influence headcount decisions, even as some industries attempt to recalibrate staffing levels after overexpansion during the prior cycle.

As companies continue to navigate this delicate balancing act between cost control and growth planning, upcoming labor market data—especially on hiring, wage growth, and labor force participation—will be closely watched for signs of broader momentum shifts in the US economy.