The numbers tell a sobering story: U.S. employers have announced 1.17 million job cuts through November 2025—the highest level since the first year of the COVID-19 pandemic. And unlike 2020, there's no expectation of a rapid recovery.

According to outplacement firm Challenger, Gray & Christmas, November alone saw 71,321 layoff announcements, up 24% from the same month last year. What's driving this wave, and what does it mean for your career?

What's Behind the Layoffs

Government Efficiency Cuts (DOGE): The Trump administration's Department of Government Efficiency has been the single largest driver, responsible for nearly 300,000 federal job cuts this year. Agencies across the government have seen reduced funding and staffing.

Technology Sector Restructuring: Tech companies have cut 153,536 workers through November—a 17% increase from 2024. After pandemic-era over-hiring, the industry continues its painful right-sizing.

Artificial Intelligence: AI has been explicitly cited as the reason for 54,694 layoffs in 2025. Companies are automating roles that previously required human workers, from customer service to data entry to basic coding.

Tariff Pressures: Nearly 8,000 job cuts have been attributed to tariffs, with companies citing higher input costs and supply chain disruptions. This number is expected to grow as tariff impacts fully materialize.

Telecommunications Collapse: The telecom sector cut 38,035 jobs through November—up 268% from last year. November alone saw 15,139 telecom layoffs, the highest monthly level since April 2020.

The Industries Hit Hardest

  • Technology: 153,536 cuts (still leading despite being down from 2024 pace)
  • Retail: 91,954 cuts as consumers pull back spending
  • Telecommunications: 38,035 cuts amid industry consolidation
  • Government: ~300,000 cuts from DOGE initiatives
  • Financial Services: Significant cuts as banks restructure

The Unemployment Picture

The national unemployment rate has ticked up to 4.4%—the highest since October 2021. While this isn't crisis-level, it represents a clear deterioration from the 3.4% lows of early 2023.

More concerning: job creation has collapsed. Employers added an average of just 62,000 jobs per month in 2025, down from 186,000 monthly in 2024. The ADP report showed private employers actually cut 32,000 jobs in November—the biggest decline in over two years.

A "no-fire, no-hire" mentality has taken hold. Companies aren't necessarily laying off existing workers, but they've stopped bringing on new ones. For job seekers, this creates a frustrating environment of few openings and intense competition.

How to Protect Your Career

1. Assess your vulnerability

Are you in a sector seeing heavy cuts? Is your role susceptible to AI automation? Be honest about your risk level. If you're in a vulnerable position, start preparing now rather than waiting for the axe to fall.

2. Build your emergency fund

The standard advice of 3-6 months of expenses may not be enough in this job market. Consider building toward 6-12 months if you're in a high-risk industry. Having financial runway gives you negotiating power and reduces desperation.

3. Update your skills

AI is eliminating some jobs while creating others. Workers who can use AI tools effectively are more valuable than those who can't. Take courses, get certifications, and demonstrate that you're adapting to the new reality.

4. Network before you need to

The worst time to build professional relationships is when you need a job. Reach out to former colleagues, attend industry events, and maintain your LinkedIn presence. Most jobs still come through connections.

5. Consider adjacent industries

If your sector is struggling, your skills may transfer to healthier industries. Healthcare, energy infrastructure, and AI-adjacent roles are still hiring. Don't limit yourself to obvious paths.

6. Document your achievements

Keep records of your accomplishments, metrics, and wins. When layoffs come, decisions often happen fast. Having a ready file of achievements can help in severance negotiations or quick job searches.

The Silver Lining

Not all the news is grim. Some sectors continue to hire:

  • Healthcare: An aging population ensures continued demand
  • Construction: Infrastructure spending drives hiring
  • AI/ML specialists: The technology causing layoffs also creates opportunities
  • Skilled trades: Electricians, plumbers, and HVAC technicians remain in short supply

The Bottom Line

The 2025 layoff wave reflects fundamental shifts in the economy—government restructuring, AI adoption, and tariff-related disruptions. These aren't cyclical forces that will quickly reverse.

The best response is proactive preparation. Build financial cushion, upgrade your skills, strengthen your network, and stay alert to opportunities. The workers who thrive in this environment will be those who adapt rather than those who hope for a return to normal.

Normal isn't coming back. But new opportunities always emerge for those positioned to seize them.