Layoffs reach highest level since 2020, new data shows. Here's why companies are cutting jobs.

Layoffs across the U.S. this year have climbed to their highest level since the pandemic slammed the economy in 2020, new labor data shows.

In the first half of 2025, companies announced 744,308 job cuts nationwide, the highest tally since the first six months of 2020, when employers cut nearly 1.6 million jobs in response to COVID-related disruptions, according to outplacement firm Challenger, Gray & Christmas.

Federal agencies have been particularly hard hit this year amid a push by Elon Musk's Department of Government Efficiency to slash costs. Other sectors shedding a large number of workers include retail, technology, media and non-profit organizations.