Depressed businesswoman getting laid off from her job, talking to her colleagues while carrying her … More
Layoffs have surged across an array of industries. Some of the problems are caused by a volatile economic landscape. President Trump’s initial tariff policy put a scare into both corporate executives and consumers. Additionally, technological advancements such as artificial intelligence (AI) and automation, are changing the workplace. Corporate restructurings due to changing circumstances added to the trend of layoffs. With more than 221,812 jobs eliminated in the first months of the year, workers and companies alike are forced to confront an ever changing challenging environment.
Layoffs in 2025 are reshaping the workforce. Government, tech, retail, accounting, manufacturing, and logistics have been dealing with the biggest cuts. Driven by tariffs, cost-cutting, AI adoption, and federal downsizing, these layoffs show a shift in the economy. For workers, they’ll need to stay proactive with upskilling, networking, and building financial resilience to navigate this storm.
The layoff wave has spared few industries. Some sectors have borne the brunt more than others. Approximately one-third of layoffs stem from the government sector or related industries. Driven by federal workforce reductions under the Trump administration, agencies like the National Park Service (1,500 layoffs), U.S. Geological Survey (1,000), and the Bureau of Reclamation (100–150) are implementing significant reductions in force (RIFs).
Tech
The tech sector has the dubious honor of leading in layoffs, per TechCrunch. Over 23,400 jobs were cut in April alone. Companies like CrowdStrike (500 layoffs), Meta, Microsoft, and Block are downsizing. By comparison, 2024 saw 150,000 tech job cuts across 549 firms. High-profile firms like Amazon, Google, and Tesla also contributed to the tally.
According to layoffs.fyi, 52,340 tech employees were laid off from around 123 tech companies. There were roughly 61,296 gov’t employees laid off by Elon Musk’s DOGE initiatives, and about 171,843 total federal departures in 2025.
Retailers
U.S. retailers eliminated over 64,000 jobs in the first four months of 2025. This made the retail sector the second-hardest-hit industry after technology and ahead of most other consumer-facing industries, reported by Challenger, Gray & Christmas. Bankruptcies at Joann Fabrics (19,000 jobs), Party City (16,000), and Big Lots (1,000) account for significant losses, with other retailers cutting jobs to brace for economic pressures like tariffs.
Management Consulting, Automobiles, and UPS
Big Four management consultancy PwC laid off 1,500 U.S. workers (2% of its workforce), following 1,800 cuts in 2024. Other similar firms such as KPMG, EY, and Deloitte have also announced layoffs, citing low attrition and pressure on profit margins.
Companies like Volvo (125 layoffs at its Charleston plant), General Motors (1,695 at its Fairfax Assembly plant), and Mercedes-Benz have announced mass layoffs. These cuts are tied to production pauses and cost-cutting amid economic uncertainty.
UPS plans to cut 20,000 jobs in 2025, citing global trade policy changes and tariffs that discourage shipping. Trucking and retail are also expected to face mass layoffs due to tariff-driven economic pressures.
Why Are Companies Laying Off Workers?
The Trump administration’s tariffs are disrupting supply chains and raising costs, particularly in retail, logistics, and manufacturing. UPS explicitly cited “changes in global trade policy” as a driver for its 20,000 job cuts. Economists warn that tariffs could trigger stagflation or a recession, further pressuring companies to downsize.
Many companies are streamlining operations to boost efficiency or profitability. CrowdStrike’s 5% workforce reduction aims to achieve a $10 billion annual recurring revenue target, while PwC’s layoffs address low attrition and bottom-line pressures. Tech firms are cutting middle managers and embracing AI-driven or self-led teams. The rise of AI and automation is displacing jobs, particularly in tech and manufacturing.
Retail giants like Joann Fabrics and Party City faced bankruptcies, leading to massive layoffs. Even surviving retailers like Big Lots are cutting jobs to stabilize finances.
The Trump administration’s push to shrink the federal government has led to mass firings and hiring freezes, with agencies like the Department of Health and Human Services (HHS) initially issuing but later revoking some layoff notices. This creates uncertainty for federal workers.
What Should Workers Know About Layoffs
Here’s what you need to know and what to do. Monitor your sector for signs of instability. Retail and tech workers should be vigilant, given their high layoff rates. Federal employees need to track policy changes, as further RIFs are expected. Resources like WARNTracker.com and Layoffs.fyi provide real-time data on announced layoffs.
In tech, generic skills won’t cut it. Identify niche skills your employer or competitors lack. This includes AI tools. If your company doesn’t offer it, invest in training to keep current and ahead of the pack. For retail or manufacturing workers, cross-training in adjacent roles like logistics or e-commerce. Continuous learning is a non-negotiable, as you don’t want to be left behind.
Layoffs often come with little warning. Severance packages may be minimal or not offered. Put aside an emergency fund that can last at least around 6–12 months of living expenses in savings. Don’t feel it’s beneath you to take on a side hustle to bring home some much needed money.
Start networking. Relationships can open doors to new opportunities. Engage with industry peers on platforms like LinkedIn, attend virtual or in-person events, and reconnect with former colleagues. A strong network can help you land a role before layoffs hit.
Layoffs can feel personal, especially when companies like Meta label affected workers as “low performers.” Don’t let it bring you down. Seek advice and support from mentors or career coaches. Reframe a layoff as an opportunity to pivot to a more stable or fulfilling role. To be fair, it’s easy said than done.
Reading Between the Lines
Tariffs and trade wars are sometimes scapegoats for companies. They may use these trends to conduct firings, pivoting to AI-driven models. The tech sector’s volatility, for instance, isn’t solely about innovation. The tech sector misjudged the market and overhired during the pandemic boom. Now companies are paying for it by over-correcting to appease shareholders.
Workers should be skeptical of corporate narratives. When companies cite “low attrition” as a layoff rationale, it’s often code for protecting profits over people. Similarly, the “low performer” label at Meta looks like a tactic to deflect blame from poor strategic planning. The real risk for workers isn’t just losing a job. It’s being left behind in an economy increasingly prioritizing automation.
On the flip side, this chaos presents opportunities. Sectors like healthcare and transportation are adding jobs, and remote work remains a viable path in tech. Workers who adapt by mastering high-demand skills, building personal brands, or exploring entrepreneurial ventures can thrive despite the uncertainty. The key is self-leadership. Keep your eyes open for opportunities. Don’t wait for employers to dictate your future.
