Layoff announcements for December have dropped to their lowest point of the year, which Challenger describes as an 'encouraging indicator.'

December Layoffs Hit Lowest Point Since July 2024

In December, companies reported 35,553 layoffs—the smallest monthly figure since July 2024—even as the fourth quarter saw significant job reductions. This information comes from a Thursday release by Challenger, Gray & Christmas, a global outplacement firm.

Andy Challenger, the firm's chief revenue officer and workplace analyst, noted, "The year ended with the lowest number of announced layoffs in 2025. December is usually a slow month, but the combination of fewer layoffs and increased hiring plans is encouraging after a year marked by substantial job cuts."

Hiring intentions for December reached 10,496, the highest for that month since 2022.

2025 in Review: Fewer Hires, More Layoffs

Despite the positive signs in December, the overall picture for 2025 was less optimistic. Planned hiring dropped by 34% compared to 2024, totaling 507,647—the lowest annual figure since 2010, according to Challenger.

Throughout 2025, employers announced 1.2 million job cuts, a 58% increase from the 761,358 layoffs in 2024 and the highest annual total since 2020. The last quarter of 2025 alone saw 259,948 planned layoffs, marking the worst fourth quarter for job cuts since 2008.

Government workforce reductions led the way, particularly following DOGE-driven layoffs of federal employees. The technology and business services sectors also experienced more layoffs in 2025 than the previous year.

Job Market Outlook Remains Challenging

Looking ahead, additional layoff announcements could make things even tougher for job seekers. Recent government data shows job openings declined in November, and the hiring rate stood at a modest 3.2%. There were 1.1 unemployed individuals for every available job—the highest ratio since early 2021.

A shopper browses goods at a Christmas market in Dupont Circle, Washington, DC, on December 10, 2025. (Photo by SAUL LOEB / AFP via Getty Images)

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