Key Takeaways
- U.S. employer hiring plans have fallen dramatically to 497,151 in the first 11 months of 2025, representing the lowest level in 15 years and a 35% decline from the previous year.
- The U.S. Department of Veterans Affairs (VA) is set to eliminate as many as 35,000 healthcare positions this month, predominantly unfilled roles, as part of a broader 10% workforce reduction.
- Wells Fargo (WFC) is cutting over 100 jobs in the Sacramento area, with its CEO citing AI-driven "efficiency" as a key factor in the decision.
- Overall job cuts in 2025 have surpassed 1.1 million, marking a 54% increase from the same period last year and the highest level since 2020.
The U.S. labor market is signaling a significant slowdown, with new data revealing a sharp decline in employer hiring intentions and substantial job cuts across multiple sectors. This downturn is exacerbated by technological advancements like artificial intelligence and strategic reorganizations within large organizations.
U.S. employers announced plans to add only 497,151 jobs in the first 11 months of 2025, marking the weakest total since 2010. This figure represents a steep 35% drop from the 761,954 hires planned during the same period in 2024, indicating a sustained contraction in job creation. This trend puts hiring on track for its fifth consecutive annual decline.
Adding to the somber employment outlook, the U.S. Department of Veterans Affairs plans to eliminate up to 35,000 healthcare positions this month. These cuts primarily target unfilled roles, including doctors, nurses, and support staff, and are expected to reduce the VA's health care workforce to approximately 372,000 employees, a 10% reduction from last year. VA spokesman Pete Kasperowicz confirmed that about 26,400 of these positions are "mostly covid-era roles that are no longer necessary." This follows an earlier reduction of nearly 30,000 employees this year through buyouts and attrition.
In the private sector, Wells Fargo (WFC) is also contributing to the wave of layoffs, announcing over 100 job cuts in the Sacramento area. The bank's CEO attributed these reductions to a drive for "efficiency," explicitly mentioning the role of AI in streamlining operations. This move highlights a growing trend where technological advancements are impacting traditional employment structures.
Overall, the year 2025 has seen a dramatic increase in job cuts, with more than 1.1 million positions eliminated through November. This figure is 54% higher than the job cuts announced during the same period in 2024 and represents the highest total since 2020. Artificial intelligence has been cited as a factor in 54,694 of these job reductions, underscoring the transformative, and sometimes disruptive, impact of AI on the workforce.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.