US Layoffs Surge: 114 Firms Set to Cut Jobs in August

Source Credit : Portfolio Prints

Rise in Layoffs

According to WARNTracker.com, a total 114 U.S. employers have filed notices for potential workforce reductions in August 2025, signaling an alarming trend as economic momentum weakens. These anticipated layoffs occur against the backdrop of sharply reduced hiring.

In July, U.S. employers announced 62,075 job cuts, marking a 29% increase from June)—and nearly triple the year-earlier tally—according to Challenger, Gray & Christmas. Meanwhile, job creation slowed drastically, with only 73,000 new jobs added in July, and the unemployment rate rose to 4.2%.

Major Employers Among the 114

While many of the announced layoffs involve small-scale reductions, several high-profile companies are expected to eliminate 500 to 1,000 jobs in August—this includes names like Microsoft, Georgia‑Pacific, and Pixelle Specialty Solutions. The wave spans sectors such as technology, retail, healthcare, logistics, and finance, hitting companies from Microsoft and Nordstrom to CVS Health and Wells Fargo.

Historic First Half of 2025

The magnitude of job cuts this year is staggering—by late July, more than 806,000 layoffs had been announced, the highest year-to-date total since 2020. That’s a 75% increase over the same period in 2024, and even 6% higher than the full-year number for 2024.

Specifically:

• In the private sector tech industry, over 89,000 roles have been cut in 2025—an increase of 36% year-over-year.


• The retail sector has shed more than 80,000 jobs, growing 249% from the year-ago period, largely driven by closures and tariff pressures


• Government-related mass layoffs have contributed heavily as well, led by federal agency reductions totaling in the high hundreds of thousands

Why Are Layoffs Spiking Now?

Multiple factors are converging:

• Economic slowdown: A Q1 2025 contraction of –0.2%—the first in three years—triggered caution across industries


• Tariff disruptions, falling consumer spending, and rising operational costs are straining margins, especially in retail and manufacturing.


• Automation and AI are being blamed for over 10,000 job cuts in recent months, even in sectors where demand remains steady


• Federal austerity programs and reorganization under new administration initiatives are driving substantial personnel reductions across agencies such as HHS, EPA, IRS, Veterans Affairs, and more

What Lies Ahead

The warning signs suggest August could bring another wave of layoffs—and possibly deeper cuts if economic conditions worsen. Workers in affected industries—including tech, health care, retail, logistics, and government services—may face increasing uncertainty. Hiring is expected to remain sluggish, and wage growth is under pressure.

Workers impacted by WARN notices may have limited notice before job loss, and support services like unemployment benefits, benefits counseling, and outplacement programs are likely to see rising demand.

Summary

Trend or Sector	Impact and Implications
Rising WARN Notices	114 firms planning cuts in August 2025
Federal Cuts	Mass layoffs across agencies significantly raise total job losses
Private Sector Drag	Tech, retail, healthcare particularly affected
Economic Pressures	Slowing growth, inflation, tariffs, automation weakening labor market
Outlook	Continued uncertainty, potential for deeper labor market softening

Americans entering August 2025 face a labor environment marked by weak hiring and widespread layoffs, cutting across industries and sectors. Workers and policymakers alike will need to navigate this turbulence with heightened caution and preparedness.