why US layoff warnings surged: US mass layoff alert: Nearly 40,000 Americans got WARN notices in October – is a bigger job crisis coming this month?

Layoffs in the USA 2025Warnings of mass layoffs across the US increased rapidly in October, revealing the first signs of tension in the job market.

Cleveland Fed Data Shows US Layoff Warnings Rise to 39,000 in October

According to the Federal Reserve Bank of Cleveland, 39,006 workers in 21 states received Worker Adjustment and Retraining Notification (WARN) notices last month, informing them of impending layoffs, CBS News reports. Federal law requires employers to provide these notices 60 days before plant closings or mass layoffs, according to the report.

WARN Notifications Reach One of Their Highest Levels Since Tracking Began in 2006

Although layoffs are high, the number remains below the peaks seen in past crises. Layoff notices rose to more than 550,000 in March 2020 and also increased during the 2008 financial crisis, CBS News reported. October’s total is among the highest since the Cleveland Fed began tracking WARN notices in 2006, according to the report.
ALSO READ: Nvidia earnings day: Memes asking Jensen Huang to save everyone are flooding social media – here are a select few

Layoffs at Target, Amazon and UPS Raise Labor Market Concerns

According to a CBS News report, major employers such as Target, Amazon and UPS have announced upcoming layoffs, raising concerns that the labor market is weakening. A record-long government shutdown has further complicated matters, delaying federal employment data by two months and creating a gap in understanding current employment trends, according to the report.

Highest layoffs in the last 22 years in October: Companies are laying off 2,500 people a week

Other indicators suggest the labor market is cooling. According to CBS News, job placement company Challenger, Gray & Christmas reported that layoffs in October reached the highest level in 22 years. Meanwhile, ADP data shows that U.S. companies cut an average of 2,500 jobs per week in the four weeks ending Nov. 1, according to the report.
ALSO READ: Bitcoin Drops from $126,000 to $95,000 — CryptoQuant reveals the real reason behind the BTC USD drop

Economists Warn of More Layoffs as AI Adoption Increases

Economists warn these layoffs may be just the beginning. Samuel Tombs and Oliver Allen of Pantheon Macroeconomics said they expect layoffs to increase next year as the adoption of artificial intelligence increases, noting that the technology has had a “net positive impact” on the labor market so far this year, as reported by CBS News.

Upcoming September Jobs Report Expected to Show 50,000 New Payrolls

The delayed September jobs report, due to be released on Thursday, will offer another measure of the health of the labor market, according to CBS News. Economists surveyed by FactSet expect a 50,000 wage increase, according to the report.

FAQ

What triggered the spike in layoff warnings in October?
Nearly 40,000 workers received WARN notices, signaling increasing pressure on the job market.

Which major companies have recently decided to lay off employees?
Target, Amazon and UPS have all confirmed layoffs.