According to data released by the job-cut management company Challenger, Gray & Christmas (CGC), the US retail industry announced layoffs of 75,800 people in the first five months of 2025. This is nearly three times the figure from the same period last year, marking a significant increase of 274%.
Just in the month of May, over 11,000 people were laid off, showing a noticeable increase compared to April. CGC analysis indicates that this wave of layoffs is driven by both existing issues and new pressures, such as declining consumer confidence, reduced foot traffic, and intensified impact from e-commerce. The new round of tariffs imposed by the Trump administration has also led to a substantial increase in operating costs for businesses, forcing them to cut jobs and reduce hiring.
The retail industry is one of the largest private employers in the US, supporting over a quarter of total employment.
It’s not just retail – layoffs across the entire US are skyrocketing. In the first five months of this year, nearly 700,000 people have been laid off nationwide, almost reaching the total for the entire year of 2024. Among them, 93,800 people were laid off in May, although slightly fewer than in April, it represents a 47% increase from the same period last year.
The service industry is also suffering greatly, with 22,000 people being laid off in May, marking the highest single-month figure since the pandemic began. Currently, the number of job cuts in the retail industry ranks second among all sectors, only behind federal government positions.
Even large companies are downsizing. Nike, CVS, and Walmart are among those who have started layoffs. Walmart confirmed to Newsweek that their restructuring plan includes laying off 1,500 people with the goal of improving operational efficiency.
Employment data also reveal a chilling trend. In May, only 139,000 new jobs were added nationwide, lower than the 147,000 in April. The federal government alone cut 22,000 positions in a single month, dragging down the overall performance.
Small businesses are also facing challenges. Reports from ADP and the National Federation of Independent Business (NFIB) indicate that small business hiring has slowed down, with job openings persistently remaining low.
Andrew Challenger, Vice President of CGC, stated, “Tariffs, cost cutting, weak consumer spending, economic pessimism… are forcing companies to restructure their workforce.”
Nicole Leinbach Hoffman, founder of RetailMinded.com, also commented that many retail businesses failed to adapt to online trends in a timely manner, leading to difficulties in maintaining profitability.
Although the number of hiring plans announced by companies currently stands at 79,700, which is more than last year, it is still at a historically low point compared to before the pandemic.
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