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A red sign with the word 'LAYOFFS' in bold white letters is displayed in front of a Miami city skyline with palm trees blowing in the wind and blue skies with scattered clouds.
A red sign with the word 'LAYOFFS' in bold white letters is displayed in front of a Miami city skyline with palm trees blowing in the wind and blue skies with scattered clouds.

Business / Economy News

South Florida Layoffs More Than Double in First Half of 2025, Driven by Hotel Renovations and Seasonal Trends

Layoffs in South Florida surged in the first half of 2025, affecting more than 3,800 workers across Miami-Dade, Broward, and Palm Beach counties—more than double the number reported during the same period last year.

Data from Florida’s Worker Adjustment and Retraining Notification (WARN) Act indicate a 120% increase in layoffs compared to the roughly 1,700 reported in the first six months of 2024. A significant portion of the job cuts this year—over 1,190 positions, or about 31%—is linked to hotel renovations throughout the region.

Among the largest workforce reductions were:

  • Mandarin Oriental Miami: 430 permanent layoffs as part of a $1 billion redevelopment project.
  • Ritz-Carlton Key Biscayne: 425 temporary layoffs tied to a $100 million renovation, with plans to rehire affected employees once construction is complete in six months.
  • SLS South Beach: 200 workers laid off.
  • Royal Palm South Beach: Over 100 workers laid off.

Florida Atlantic University economics professor Bryan Cutsinger told South Florida Business Journal that the hospitality sector’s seasonal nature often leads to temporary job losses during the slower summer months, particularly as winter tourists return north. “There’s a rise in economic activity here from November to April,” Cutsinger said. “When it gets hot and snowbirds head back north, we can expect a temporary increase in layoffs.”

In addition to seasonal factors, other layoffs were attributed to shrinking nonprofit budgets and the expiration of large contracts. For instance, Lewis Tree, a former contractor for Florida Power & Light, laid off workers after its contract ended. Cutsinger noted that these layoffs may be temporary if new contractors choose to rehire the same employees.

Despite the increase in WARN notices, South Florida’s job market remains relatively strong compared to state and national trends. In June, Miami-Dade County reported an unemployment rate of 2.4%, down from 2.6% a year earlier. Broward County’s rate rose slightly to 3.7% from 3.4%, and Palm Beach County increased to 3.9% from 3.6%.

Statewide, Florida’s unemployment rate held steady at 3.7% for the third consecutive month. Nationally, the U.S. unemployment rate was 4.1% in June, unchanged from a year earlier and down slightly from 4.2% in May.

Cutsinger emphasized that while layoffs have increased in certain sectors, the overall employment picture has not shifted dramatically. “Any rise in unemployment observed in state reports is likely too small to significantly impact aggregate unemployment rates,” he said.

He also pointed out that nonprofits are particularly sensitive to funding changes. “The demand for services offered by nonprofits is partially determined by the amount of money donors are willing to allocate,” he noted. “A change in that can lead to a change in demand.”

Across industries, labor is often the first area companies adjust in response to financial pressure. “They’re probably not going to sell the factory,” Cutsinger said. “What do they have control over? The amount of labor they employ.”

 

   

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