Retail job losses in the U.S. have surged dramatically this year, increasing by 249% compared to the same period in 2024, according to a new report from the global outplacement firm Challenger, Gray & Christmas.
By the end of July, U.S. retailers had announced 80,487 job cuts—up from just over 23,000 during the same timeframe last year. The report identifies inflation, tariffs, and broader economic uncertainty as key factors driving these layoffs and store closures. Continued weakness in consumer spending may lead to additional reductions in retail staffing.
This trend is part of a larger wave of layoffs affecting multiple industries. So far in 2025, employers across the U.S. have announced 806,383 job cuts, marking the highest year-to-date total since 2020, when more than 1.8 million jobs were eliminated in the early months of the pandemic.
Challenger also noted that plant, unit, and store closures have accounted for 120,226 of this year’s job losses. Corporate restructuring has led to 66,879 cuts, while bankruptcies have contributed an additional 35,641 job losses.
Advancements in technology are playing an increasingly significant role in job reductions. The report found that 20,219 job cuts this year were linked to automation and other tech upgrades. Of those, 10,375 were specifically attributed to artificial intelligence, indicating that AI-driven disruption is accelerating across the workforce.
