Forget ghosts and ghouls this fall: October’s job cuts are what’s really spooking economists.

Research from the executive outplacement firm Challenger, Gray & Christmas reports 153,074 job cuts across U.S. industries this October, the worst report in over a decade. For context, that’s 175% higher than October of last year and 183% above last month.

But that’s not even the scariest part.

From January through October of 2025, employers have made more than 1 million job cuts, according to the firm. That’s 44% higher than total cuts throughout 2024 and the highest since 2020.

To find an October with similarly dismal numbers, we have to go back to 2003, when Challenger reported 171,874 job cuts. Interestingly, the firm’s analysts note a parallel connecting these two periods: “Disruptive technology.”

Mobile phones were gaining traction in 2003, which triggered major restructuring in industries like telecommunications, even as access to the internet was growing and the economy was continuing to recover from the dot-com crash.

Today, AI is the big story, which can help explain the particularly high numbers of layoffs in the tech industry (33,281 in October). Challenger found that tech firms cut 141,159 jobs this year, a 17% increase compared to figures from the same period in 2024 (1).

Massive layoffs at Big Tech firms accounted for some of these cuts in October, but Challenger notes that job cut plans weren’t isolated to names like Amazon (2) and Alphabet (3). Overall, there were 450 distinct job cut plans from companies in October, suggesting this is a broad trend.

Warehousing saw the greatest surge, with 47,878 cuts in October compared to just 984 the previous month. Again, Challenger’s researchers pointed to automation as a key contributor.

While more CEOs are open about AI’s impact on layoffs, there’s debate over whether AI is the real reason, or a convenient cover for cost cuts. ​ And though AI seems to be playing a role, macroeconomics still matters. ​ There’s no denying that American consumer spending is softening. Monthly household spending fell to 4.1% in August, the lowest rate since April 2021, according to the Federal Reserve (4). ​ And then there’s inflation. Granted, inflation has become more manageable with the recent rate at 3%, but prices remain high and companies have to adjust to this new normal (5).

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All in all, these data points suggest this recent surge in layoffs is part of a longer-term trend with multiple moving pieces.

Although rate cuts from the Fed may spur economic activity, the disruptions from AI and persistent inflation are unlikely to end anytime soon (6).

Nobody knows how long these labour market headwinds will last, but that doesn’t mean there aren’t ways Americans can weather the storm.

No matter your position in the labor market, the ultimate defense move is to build an emergency fund.

For those who don’t already have three months of expenses in savings, consider building this protection ASAP. These funds will serve as a lifeline in the event of a layoff. Plus, with a high-yield savings account, you can earn on your savings without sacrificing safety or liquidity.

It’s also worth researching money management apps to get a better view of monthly cash flows. Beyond prioritizing savings, these apps can help cut unnecessary spending and pay down debt.

For those entering today’s job market, flexibility and persistence are major assets. There’s no way to sugarcoat it: Job postings are down, especially for entry-level jobs (7). That means applicants need to keep pushing and showcase versatile skills to stand out.

Besides continuously applying for open jobs, consider exploring certifications centered on relevant or in-demand skills that you are interested in.

Although it’s cliché, networking is everyone’s greatest tool when searching for jobs or internships. Leverage current connections or alumni networks, and look for internships or events (either virtual or in-person) to broaden the reach of potential roles.

Networking is also important for anyone already working, especially in fields that are more vulnerable to job cuts. Even if a particular industry isn’t directly impacted by AI or restructuring talk, it’s safer to remain vigilant about new training or mentorship opportunities and consider building additional income streams through freelance work.

For those who’ve been laid off, be sure to prioritize your mental health.

It’s understandable why unemployment often leads to depression, which is why staying connected with trusted friends and mentors is especially important. Not only will this help avoid the health-draining effects of isolation, it can keep you motivated and active (8).

In addition to applying and searching for jobs, consider using this time to upskill with certifications from online training sites like Coursera. You could also consider short-term contract work to expand your connections and enhance your resume.

No matter how long this challenging job market persists, focusing on saving, socializing, and upskilling are all key strategies to stay resilient.

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Challenger, Gray & Christmas (1); Reuters (2); CNBC (3); Federal Reserve Bank of Reserve (4); BLS (5); Federal Reserve (6); Hiring Lab (7); Frontiers in Public Health (8)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.