US Layoffs Surge 80% with Nearly 700,000 Jobs Cut in Five Months

Key Takeaways

• US layoffs surged 80% in early 2025, reaching nearly 700,000 job cuts in five months.
• Tech jobs declined by over 74,700 positions, a 35% increase from last year.
• Retail sector layoffs rose 274%, with stricter immigration policies impacting foreign workers.

The surge in US layoffs during the first half of 2025 has sent shockwaves through the job market, affecting hundreds of thousands of workers, employers, and families. This analysis examines the scale, causes, and consequences of these job cuts, with a special focus on the tech sector and the impact on foreign workers. The goal is to provide a clear, evidence-based overview that helps readers understand the current landscape, anticipate future trends, and take practical steps in response to these changes.

Purpose and Scope

This content aims to:
– Present a detailed, data-driven overview of US layoffs from January to May 2025
– Analyze the main factors driving job cuts, especially in tech jobs and related fields
– Explore the effects on different groups, including US citizens and foreign workers
– Summarize recent policy changes and their implications for the labor market
– Offer practical steps for affected workers and employers
– Highlight official resources for ongoing updates and support

Methodology

The analysis draws on official data from the Bureau of Labor Statistics (BLS), reports from Challenger, Gray & Christmas, and statements from industry experts. It reviews quantitative trends, compares year-over-year changes, and examines policy updates under the Trump administration. The findings are organized into clear sections, with key statistics and trends presented in tables and bullet points for easy reference.

Key Findings

• US layoffs have surged 80% in early 2025, with nearly 700,000 jobs cut in just five months.
• Tech jobs are among the hardest hit, with over 74,700 tech positions eliminated so far this year.
• Retail and services sectors have also seen sharp increases in job cuts, with retail layoffs up 274%.
• Job openings are shrinking, making it harder for laid-off workers to find new positions.
• Foreign workers face extra challenges due to stricter immigration and work authorization rules.
• Policy changes under President Trump are reshaping the labor and immigration landscape, affecting both employers and employees.

Data Presentation and Visual Summary

The following table summarizes the main job cut statistics for January–May 2025, compared to the same period in 2024:

Visual Description:
Imagine a bar chart with six bars, each representing one of the metrics above. The bars for announced job cuts, retail sector layoffs, and services sector layoffs are much taller in 2025 than in 2024, showing the sharp increase. The bar for job openings is slightly shorter, reflecting the decline.

Comparisons, Trends, and Patterns

• Layoff Volume: The 696,309 job cuts announced in the first five months of 2025 mark an 80% jump from the 385,859 cuts during the same period in 2024. This puts 2025 on track to surpass the total layoffs for all of 2024 by mid-year.
• Tech Sector: Over 74,700 tech jobs have been cut so far in 2025, a 35% increase from last year. Major companies like Amazon, Google, Meta, and Microsoft are leading these reductions. Microsoft is planning even more layoffs, including in its Xbox division.
• Retail and Services: Retail layoffs have soared by 274%, with 75,802 jobs lost. The services sector has seen 44,000 jobs cut, an 80% increase.
• Monthly Fluctuations: In May 2025, 93,816 job cuts were announced. While this is 12% lower than April’s 105,441, it is still 47% higher than May 2024.
• Unemployment and Job Openings: The unemployment rate in April 2025 rose to 4.0%, up 1.4 percentage points from the previous year. Job openings fell to 7.2 million, the lowest since September 2024, and down 3% from March.

Key Drivers Behind US Layoffs

Several factors are fueling the surge in job cuts:

• Economic Uncertainty: Companies are reacting to lower consumer spending, funding cuts, and tariffs. Many are preparing for a possible economic slowdown by reducing staff.
• AI and Automation: Rapid adoption of artificial intelligence is replacing workers, especially in tech and customer service roles. This shift is happening faster than workers can be retrained for new jobs.
• Government Policy: Cuts in government spending and efforts to improve efficiency are leading to layoffs in the public sector. For example, Voice of America is planning 639 layoffs, and the State Department is also reducing staff.
• Expert View: Andrew Challenger from Challenger, Gray & Christmas explains that companies are “spending less, slowing hiring, and sending layoff notices” because of ongoing uncertainty.

Policy Changes and Regulatory Context

The Trump administration has introduced or proposed several changes that affect the labor market:

• H-1B Visa Selection: New rules make it harder for foreign nationals to get work authorization, especially in sectors that rely on skilled immigrants like tech and healthcare.
• Healthcare and Retirement: There are proposals to withdraw Affordable Care Act (ACA) protections, change ERISA rules, and limit certain investment options in retirement plans.
• Union Activity: Union election certifications have risen 40% since 2021, leading to more union organizing in industries with high turnover.
• Remote Work: About 25% of employees continue to work remotely at least part-time, a rate much higher than before the pandemic.

For more details on labor statistics and official updates, readers can visit the Bureau of Labor Statistics website.

Practical Implications for Affected Individuals

The effects of these job cuts are being felt across the workforce:

• Job Seekers: The market is much more competitive. Job postings are down 15%, while applications per job are up 30% compared to last year. This means more people are fighting for fewer jobs.
• Foreign Workers: Stricter rules for work visas and authorizations make it even harder for non-citizens to stay employed, especially in tech jobs. Those on H-1B visas or similar permits may need to act quickly if laid off.
• Employers: Companies must keep up with changing labor laws, increased union activity, and new expectations from workers about remote and hybrid work.

Step-by-Step Procedures for Affected Workers

If you have been laid off, here are the steps you should take:

1. Get Written Notice: Ask your employer for a written notice of termination. Make sure you understand your severance package, health benefits, and COBRA coverage options.
2. Apply for Unemployment: File for state unemployment benefits right away. Each state has its own process, so check your state’s unemployment office website for details.
3. Use Outplacement Services: Many large employers offer help with job searches, resume writing, and interview preparation.
4. Update Your Resume and Profiles: Refresh your resume and LinkedIn profile. Register with job search websites to find new opportunities.
5. For Foreign Workers: If you are on a work visa, consult an immigration attorney immediately. You may have a limited time to find a new job or change your visa status. For H-1B visa holders, you can find the official Form I-129 for changing employers or extending your stay.

For employers planning layoffs:

• Follow the WARN Act: If you are conducting a mass layoff, you must provide advance notice to employees and state workforce agencies. The US Department of Labor provides details on compliance.
• Update Policies: Review your internal policies to make sure they match new federal and state labor rules.

Background and Historical Context

Layoffs are a regular part of the US labor market, with over 20 million people laid off or discharged each year. However, big spikes usually happen during major disruptions, such as the COVID-19 pandemic in 2020. In 2023 and 2024, the labor market was not as tight as many believed, with job growth and participation rates revised after new data came in. The current wave of layoffs in 2025 is on pace to break recent records, with the total number of job cuts likely to surpass all of 2024 by the middle of the year.

Future Outlook and Anticipated Developments

Looking ahead, several trends are likely to shape the job market:

• Continued Volatility: Layoffs are expected to stay high through the rest of 2025, especially in tech, retail, and industries affected by automation and economic challenges.
• Policy Shifts: More changes in labor, immigration, and benefits policy are likely as President Trump’s administration continues to roll out its agenda.
• Slow Recovery: There is little sign of a quick rebound in hiring. Job seekers should prepare for tough competition and consider learning new skills or switching careers.

Limitations of the Analysis

While this overview uses the most recent data available, several factors could change the outlook:

• Data Lag: Official statistics may be updated or revised as new information comes in.
• Policy Uncertainty: Proposed changes may not all become law, and their effects could vary by industry and region.
• Sector Differences: While tech jobs and retail are highlighted here, other sectors may experience different trends.

Evidence-Based Conclusions

The surge in US layoffs in early 2025 is driven by a mix of economic uncertainty, rapid changes in technology, and new government policies. Tech jobs, retail, and services are the most affected, but the impact is spreading across the economy. Foreign workers face extra hurdles due to tighter immigration rules, and all job seekers must deal with a more crowded job market. Employers need to stay alert to changing laws and workforce expectations.

As reported by VisaVerge.com, these trends highlight the importance of staying informed and prepared. Workers should act quickly if laid off, especially if they are on a visa, and employers must follow all legal requirements when reducing staff.

Actionable Takeaways and Next Steps

• For workers: If you lose your job, act fast to secure benefits, update your job search materials, and seek legal advice if you are a foreign worker.
• For employers: Make sure you follow all legal rules for layoffs, including the WARN Act, and keep your policies up to date.
• For everyone: Keep checking official sources like the Bureau of Labor Statistics for the latest updates on layoffs, job openings, and labor market trends.

By understanding the current landscape and taking practical steps, both workers and employers can better manage the challenges of this difficult period in the US job market.

Learn Today

Layoffs → Temporary or permanent job terminations by employers, often due to economic or organizational reasons.
H-1B Visa → A US visa allowing foreign skilled workers to stay and work temporarily in specialty occupations.
WARN Act → A US law requiring advance notice to employees before mass layoffs or plant closures.
Job Openings → Number of available job positions employers actively seek to fill during a given period.
Unemployment Rate → Percentage of the labor force actively seeking but unable to find employment.

This Article in a Nutshell

US layoffs spiked dramatically in early 2025, severely affecting tech and retail sectors. Foreign workers face rising challenges amid tightening immigration rules and scarce job openings, signaling a tough job market and urgent need for adaptation by both workers and employers nationwide.
— By VisaVerge.com