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American employers have already reduced more jobs this year than in all 2024, a new report showed Thursday, following discounts of the jobs of the federal government, artificial intelligence and the prices of President Donald Trump.
The workers of the US State Department were dismissed when they left the building in Washington, DC, on July 11, 2025.
AFP via Getty Images
Key facts
Private and public employers have reduced 62,000 jobs in July, according to a report by the Career Service Company Challenger, Gray & Christmas, an increase of almost 30% compared to the previous month and an increase of 140% in the same month of last year.
More than 806,000 jobs have been removed to date in 2025, already higher than the 761,358 which have been eliminated in 2024.
The cuts of the government’s ministry of efficiency to federal agencies and subsidies, as well as the implementation of artificial intelligence and concerns about Trump prices, are largely responsible for the Cups, according to Andrew Challenger, Vice-President Director and Expert in Work for Challenger, Gray and Noël.
The government has reduced 2,92,294 jobs this year – the main sector of job discounts from afar – monitoring technology at 89,251 and 80,487 job cuts in retail.
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How many job cuts is it responsible?
The Challenger report indicates that the so-called “DOGE IMPACT” is the main reason for job suppression announcements until now in 2025. President Donald Trump has launched the greatest singular cup in the history of the United States at the beginning of this year when he offered more than 2 million people a redemption. About 65,000 people had accepted the offer within two weeks, while 24,000 cuts were made in the US military and 10,000 in the veterans department, among thousands of others. In addition to direct reductions in federal workforce, Doge’s discounts to subvent funding have also led to 17,826 decreases in the non-profit sector this year, up 413% compared to 2024, said Challenger. Non -profit organizations have cited the challenges of the reduction in federal funding, the increase in operational costs and persistent economic uncertainty.
How does AI affect job cuts?
Technology is the main private sector in the job cuts, with 89,251 eliminated in 2025 so far. Challenger claims that the advancement of artificial intelligence and continuous uncertainty surrounding the work visas contributed to the reduction of staff, which increases by 36% in the sector during the same period last year. Until now in 2025, companies that have undergone large -scale layoffs this year include Intel (21,000), Microsoft (15,000 in two layoffs), Paypal (2,500) and Hp (2,000).
How did the prices affect job cuts?
The retail and automotive sectors have increased dismissals as a result of global prices implemented by the Trump administration. Retail announced 80,487 job cuts in July, up 249% until 2024, citing prices, inflation and continuous economic uncertainty. Automobile manufacturers have reduced 16,883 jobs this year, down compared to last year, and mainly cited prices for losses as well as fluctuations in production demand, disturbances in the supply chain and an increase in operational costs
Contra
US companies said they planned to hire 86,132 people so far this year, compared to 73,596 at the same period in 2024, reports Challenger. The entertainment and leisure sector is responsible for nearly a third of the job plans, which, according to Challenger, could reflect a rebound in seasonal roles and linked to services. Insurance employers have planned 12,800 hires and the automotive sector also announced 6,161 new jobs. Hiring is down from year to year in the technology, construction, industrial and energy sectors.
What to monitor
Friday job report. The unemployment rate dropped to 4.1% in June after being seated at 4.2% from March to May, according to the latest data. Employment growth was 37% lower than the first half of 2025 compared to 2024.
