Tech Firms Lead October Job Cut Surge Amid AI Restructuring

In October, U.S. employers cut over 150,000 jobs, the highest for the month in two decades, largely due to AI adoption and cost-cutting measures. The tech sector was most affected, followed by retail and services. Job cuts have risen 65% this year, totaling over a million.

In a significant economic development, U.S.-based employers announced over 150,000 job cuts in October, marking the most substantial reduction for the month in more than 20 years. The report from Challenger, Gray & Christmas highlights how industries are increasingly adopting AI-driven adjustments and intensifying cost-cutting measures.

The private sector, particularly tech firms, led the wave of job cuts, followed by the retail and services sectors. According to the global outplacement company, cost-cutting initiatives topped the list of reasons for the layoffs, accompanied by a rise in artificial intelligence implementation.

The surge in job cuts represents a 175% increase year-on-year for October alone, with cumulative cuts reaching over 1 million this year—up 65% from last year's figures. This trend points to major shifts in various industries adjusting after a pandemic-triggered hiring boom amid a backdrop of fiscal tightening and changing consumer dynamics.

(With inputs from agencies.)