A surge of year-end layoffs across the United States is poised to leave more than a million Americans without work heading into the Christmas season, as nearly one in three companies prepares to cut jobs before December ends. Resume.org's November 2025 survey of 1,008 U.S. business leaders found that 31% of firms plan layoffs before January, adding pressure to an already battered labor market that has logged the worst job-cut numbers since 2020. More than 1.1 million workers have been laid off through October, according to Challenger, Gray & Christmas.
The timing is striking: 57% of the planned cuts are expected between Thanksgiving and Christmas, while 43% will fall in the week between Christmas and New Year. Resume.org also reports that 32% of companies had already begun reducing staff before Thanksgiving, despite most executives acknowledging the cuts did not need to happen immediately.
The survey found that 34% of business leaders said layoffs "definitely could have waited" until after the holidays, and another 40% conceded they "probably could have" postponed the move. Instead, companies are prioritizing financial resets heading into 2026. Seventy-four percent cited cost-cutting ahead of the first quarter, while 42% admitted that acting now allows them to avoid paying bonuses and 35% said the timing helps them bypass obligations tied to unused paid leave.
Executives pointed to several pressures behind the reductions, including economic concerns (28%), declining performance (27%), AI and automation (25%), and restructuring (20%). Kara Dennison, head of career advising at Resume.org, underscored the toll on workers. "For the person losing their job, the timing is brutal," she said. "The holidays magnify stress, and lost income combined with the social expectations of the season can make the experience feel lonelier."
Dennison added that displaced workers face a difficult hiring climate because recruitment typically slows in December. She also warned that job seekers waiting until January may fall behind others who begin their search immediately.
Artificial intelligence is increasingly shaping redundancy decisions, with 69% of companies using AI to identify roles for elimination and 66% deploying it to support the layoff process itself. Even so, companies still rely on personal communication when delivering the news: 25% use in-person one-on-one meetings, 21% send personalized emails, and 16% opt for virtual individual sessions.
Severance practices remain uneven. Only 58% of companies provide packages to all affected employees, with 35% offering partial coverage and 6% providing none. Among firms that do pay severance, 34% give two weeks' wages and 9% provide less than that. About two-thirds say they will offer job placement support.
The survey also highlights a stark divide inside corporate America. Eighty-two percent of business leaders confirmed that executives will still receive bonuses, and 57% said their companies will proceed with traditional holiday celebrations. This comes even as 73% of managers agree that layoffs during the holidays are unethical.
Challenger, Gray & Christmas reported that October's 153,074 job-cut announcements marked the highest October figure in 22 years-a 175% spike from 2024. Government roles saw the steepest losses, with 307,638 cuts through October, driven heavily by reductions at the Department of Government Efficiency. Technology companies announced 141,159 layoffs, followed by 90,418 in warehousing and 88,664 in retail.
Dennison urged laid-off workers to move quickly rather than wait out the holidays. She advised people to focus on "securing unemployment benefits, updating your resume and LinkedIn immediately, and reconnecting with people who can open doors." She added: "People who wait until January to start networking are often already behind those who used the holiday weeks to get organised and prepared."
