Challenger: Retail hit hard by jobs cuts in August; CEO exits up 100%
A sharp rise in jobs cuts doesn’t bode well for holiday hiring and it comes amid a surge in CEO exits.
Retailers have eliminated 83,656 jobs this year through August — up 242% from the 24,489 cuts announced during the same period last year, according to a report from global outplacement and business and executive coaching firm Challenger, Gray & Christmas. In the month of August alone, retailers cut 3,169 jobs, compared to 1,412 cuts in August 2024.
The cuts come as Challenger previously stated that retail companies reported 38 CEO exits through July 2025, representing a 100% increase from the 19 CEO exits recorded during the same period last year. Six executives left in July alone.
“Retailers are being hard hit by tariffs, inflation, and ongoing economic uncertainty causing bankruptcies and closures,” said Andrew Challenger, senior VP and labor expert for Challenger, Gray & Christmas. “If tariffs and consumer spending constraints play out, the approaching holiday shopping season may see fewer seasonal hires and, in fact, high layoffs.”
Closings of stores, units or plants have led to 131,030 layoffs so far this year, up from 83,536 during the same period last year. Restructuring efforts have resulted in 96,871 job cuts. Bankruptcies accounted for another 35,744 layoffs, up from 10,356 through August 2024.
Regions
Challenger tracks job cuts by company headquarters location, unless an announcement specifies the geographic location of the layoffs.The East region has experienced the largest year-over-year increase in job cuts, rising 224% from 147,368 in 2024 to 477,092 in 2025, with the surge driven by reductions at Federal agencies counted in Washington, D.C.
The Midwest saw a more moderate increase, with cuts rising 8.3% from 89,664 in 2024 to 97,086 in 2025. In the West, job cuts remained essentially flat, totaling 231,969 in 2025 compared to 234,141 in 2024. The South reported a 32% increase, rising from 65,248 in 2024 to 86,215 in 2025.
Hiring Plans
So far this year, employers (across all industries tracked by Challenger) plan to add 87,626 jobs. Employers announced plans to add 1,494 jobs in August, the lowest total for the month since Challenger began tracking hiring plans in 2009.
“September is typically when we begin to see large seasonal hiring announcements, which foretell how retailers expect the holiday season to go,” said Challenger. “Coming off the lowest August on record for hiring plans, it may be a troubling sign.”
