So far in 2025, U.S. employers have slashed 221,812 jobs, the highest year-to-date total since 2009, when 428,099 jobs were eliminated, according to a recent report from global outplacement and career transitioning firm Challenger, Gray & Christmas. Most of these job cuts were the result of the Department of Government Efficiency’s mass firing of federal workers.
How can you tell if your company will be the next to downsize? Here’s what you need to know about layoffs in 2025 to make sure you’re not caught off guard.
[Related:Fired vs. Laid Off vs. Furloughed — What’s the Difference?]
Are Widespread Job Layoffs Coming in 2025?
With inflation and other economic risks lingering, there’s no crystal ball to predict what’s in store for 2025. However, career expert and author Laura Gassner Otting believes that while layoffs make news, they don’t tell the full story.
“Layoffs grab headlines, but the reality is that the overall job market is still resilient,” she said in an email. “Unemployment remains relatively low, and many industries — like health care, green energy and skilled trades — are desperate for workers.”
U.S. Bureau of Labor Statistics data show the unemployment rate was 4.1% as of February 2025, which is low in historical terms. The BLS also reports that the labor market has remained healthy so far in 2025, with U.S. employers adding over 150,000 jobs in February, led by robust hiring in health care, financial activities and transportation.
Even though the government laid off over 60,000 workers in the first two months of the year, it’s important to note that these layoffs are an outlier. Plus, with high demand for workers specializing in artificial intelligence and machine learning, many tech companies are still hiring.
[See: 20 Careers With the Most Job Security Right Now.]
Which Industries Are Most Vulnerable in 2025?
While no job is immune to layoffs, some industries may be more vulnerable to job cuts than others, including the following.
— Government. The Department of Government Efficiency’s mass layoffs of federal workers have accounted for a significant portion of the job losses this year, and there may be more cuts coming.
— Retail. According to the Challenger, Gray & Christmas report, retailers have cut 45,375 jobs so far in 2025, a 572% increase from the 6,751 retail job cuts announced in the first two months of 2024.
— Tech. Even though tech companies are still hiring, Otting says the industry may still be feeling the aftershocks of pandemic-era over-hiring. “Companies bulked up to meet skyrocketing demand, and now they’re trimming the fat to focus on profitability,” she said.
— Services and consumer products. With businesses starting to integrate AI, self-service kiosks and robotic process automation, they may eliminate more jobs in areas like customer support, administrative tasks and retail services.
— Media. The media industry is struggling due to declining ad revenue and shifts in consumer behavior. “Legacy companies are having a hard time adapting to streaming and digital-first models, which is resulting in job cuts,” Otting said.
Layoffs in 2025
Over 200,000 people have lost their jobs in 2025. Here are the jobs eliminated across the most affected industries, according to Challenger, Gray & Christmas:
| Industry | Number laid off |
| Government | 62,530 |
| Retail | 45,375 |
| Technology | 22,042 |
| Services | 13,804 |
| Consumer products | 12,947 |
Who Usually Gets Laid Off First and When?
Newer employees are at risk of getting laid off in the early round of downsizing, as the “last in, first out” saying goes. In some cases, recruiters and higher earners are let go as well.
Upper management may also adjust the business plan, with layoffs reflecting the company’s new priorities. There may be a greater focus on projects that generate revenue rather than nonessential projects. Employees with redundant, outdated or surplus skill sets might be more likely to be laid off.
Layoffs can occur at any time, but January and December are well-known for job losses as employers are reviewing their budgets during those months.
Signs You May Be Facing a Layoff
Here are some ways to find out if your company is preparing for layoffs.
1. Employees Who Leave Aren’t Replaced
Involuntary attrition means a company may decide to eliminate a position altogether after an employee leaves. This leads to a smaller, streamlined workforce. With more companies investing in artificial intelligence integration and task automation, some may permanently axe certain positions to invest more money in AI-related roles.
2. There Is a Hiring and Spending Freeze
The biggest red flag that a company or department is preparing for a layoff is financial. “If your company freezes budgets, has declining stock performance and/or misses revenue targets, it’s smart to get your professional life in order for a change,” said Adriana L. Cowdin, CEO and executive career coach at Be Bold Executive Coaching, in an email.
3. New Projects Get Put Off
This may mean budgets are shrinking for projects that aren’t needed or that do not directly translate into revenue. While the delay of new projects alone doesn’t definitively indicate imminent layoffs, it can be a red flag.
4. A Company Merger or Acquisition Is on the Way
While mergers or acquisitions result in two companies combining strengths and profitability, they may also lead to removing employees with duplicate skill sets. For example, Microsoft recently laid off 1,900 workers in its gaming division after acquiring video game maker Activision Blizzard.
5. Executives Are Leaving the Company
At higher levels, it’s easier to see the financial direction of a company. Executives may notice and leave before things collapse. Their departure often reflects a lack of confidence in the company’s ability to weather impending storms or execute turnaround strategies.
6. There Have Been Previous Layoffs
If a company is laying off employees with some regularity, its strategy may not be financially stable in the long term.
But keep in mind that previous or current layoffs aren’t always a red flag. Some companies may continue to hire new employees despite cutting certain positions.
7. The Company Is Restructuring
Company restructuring is a strategic adjustment to align a company’s resources with its evolving needs. In some cases, it’s a way for a company to look ahead and see if it can shed unnecessary job roles.
8. Company Performance Is Declining
Companies may reduce their workforce in response to declining revenue and company performance. So if the company you work for has not been doing well over long periods of time, it may need to cut jobs and restructure its business plan.
9. The Company Is Outsourcing Labor
Outsourcing labor may be an effort to cut costs rather than focus on local employees. Restructuring and reorganizing are other ways for employers to shed in-house roles.
10. A WARN Act Is Circulated
A Worker Adjustment and Retraining Notification Act notice is usually posted in a workplace in advance of permanent closures or large-scale layoffs. This is a sure sign that layoffs are coming. Employees who do not receive 60 days of written notice that there will be layoffs may seek damages and back pay from their employers, according to the Department of Labor.
WARN protects workers in companies with more than 100 employees, and employees need to have worked at the company longer than six months to be covered.
11. An Emergency Meeting Has Been Scheduled
When an email or calendar invite suddenly arrives with a message about an urgent companywide meeting, this may mean that management is ready to communicate about major staff changes.
12. Outside Consultants Are Arriving
If a company is considering laying off employees, it may hire consultants to review company performance and assess how operations may be restructured, including which employees are redundant.
[Read: Things Your Boss Can’t Legally Do.]
Signs Your Job Is in Jeopardy
Here are some red flags that your position is at risk of a layoff.
Your manager suddenly becomes very involved. If a manager suddenly asks you to write your job description, the company may be considering laying you off. This also goes for a boss who is usually a micromanager but suddenly becomes distant. A boss who is unavailable to talk about the future of your role should raise concerns.
Your workload shrinks. If you’re losing assignments and there’s been no effort to fix the problem, that may be another sign that you’re not needed.
You’re left out of meetings. No longer being looped in on meetings, emails and other communications may be a sign that you are no longer considered an essential part of the team.
Vendors and contractors aren’t paid on time. If your company starts delaying payments to vendors, freelancers or contractors, it may be experiencing cash flow problems.
You’re hearing rumors. If rumors are circulating within your company about potential layoffs and you start feeling a sense of uncertainty among other employees, this could be another red flag.
Advice for Weathering Layoffs
Aside from watching for signs of potential layoffs, it’s a good idea to start “future-proofing” your career. “You can do so by focusing on adaptability, learning new skills such as data analysis and positioning yourself as indispensable,” Otting said. “The people who thrive in moments like this are the ones who see change coming and run toward it, not away from it.”
Another way to manage the uncertainty of layoffs is to reach out to your network. Diana Bernal, a career strategist at Corner Office Latinas, recommends reconnecting with former co-workers or friends before you find yourself out of a job and need their help. “You never know where the conversation will lead,” Bernal said in an email. “And if you do need to lean on them in the coming months, it will be a more authentic connection.”
Remember, layoffs are not always a reflection of your skills or value but, more often, a business decision. So if you’re impacted by job cuts, don’t take it personally. Instead, use the post-layoff period to revamp your skills, create more income streams and update your resume. This way, you’ll be more than ready to seize new opportunities when they arise.
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12 Signs You May Be Facing a Layoff originally appeared on usnews.com
