Layoffs across the U.S. reach highest level since 2020. Here's why.
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Layoffs across the U.S. this year have climbed to their highest level since the pandemic slammed the economy in 2020, new labor data shows. In the first half of 2025, companies announced 744,308 job cuts nationwide, the highest tally since the first six months of 2020, when employers cut nearly 1.6 million jobs in response to COVID-related disruptions, according to outplacement firm Challenger, Gray & Christmas.
AI Summary
Main Idea: U.S. layoffs have hit their highest level since 2020, with Microsoft, the Department of Government Efficiency, and tariff pressure all adding to the rise.
Key Points:
- Companies announced 744,308 job cuts in the first half of 2025, the highest six-month total since the start of the pandemic.
- The Department of Government Efficiency has driven nearly 287,000 cuts, mostly from federal agencies and related groups.
- Microsoft said it will cut about 9,000 jobs, adding to a second major round of layoffs this year.
- Retail, nonprofits, and other companies are also cutting workers as tariffs, inflation, and slower growth raise pressure.
Impact on the People
Negative Impact
Layoffs at Microsoft, federal agencies, and retailers can mean fewer paychecks, weaker local spending, and more strain on households and small businesses.
Positive Impact
No clear positive impact identified.
How did each entity affect people?
Rate how each entity in this article affected the American people.
- Primary:Department of Government Efficiencygovernment agency or body
- Primary:Microsoftcompany
Candidate Entities10 candidates · 5 weighted vote min · 70% decision
- Department of Government Efficiencygovernment agency or bodyPrimaryEvaluated
Central government body whose cost-cutting actions are linked to a large share of the layoffs.
Include 0 (0%)Ignore 0 (0%)5 to threshold - MicrosoftcompanyPrimaryEvaluated
Major company announcing a large second round of layoffs that is central to the article.
Include 0 (0%)Ignore 0 (0%)5 to threshold - Department of Educationgovernment agency or bodyMajorAI selected
Named federal agency cited as being heavily affected by the layoffs.
Include 0 (0%)Ignore 0 (0%)5 to threshold - Department of Health and Human Servicesgovernment agency or bodyMajorAI selected
Named federal agency cited as being heavily affected by the layoffs.
Include 0 (0%)Ignore 0 (0%)5 to threshold - Elon MuskpersonMajorAI selected
Named public figure associated with the Department of Government Efficiency and its layoffs.
Include 0 (0%)Ignore 0 (0%)5 to threshold - United States Agency for International Developmentgovernment agency or bodyMajorAI selected
Named federal agency cited as being heavily affected by the layoffs.
Include 0 (0%)Ignore 0 (0%)5 to threshold - 23andMecompanyContextCandidate
Named company that filed for bankruptcy and is cited as part of the layoffs backdrop.
Include 0 (0%)Ignore 0 (0%)5 to threshold
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