Dive Brief:
- U.S. employers in the retail industry announced 80,487 job cuts through July, a 249% surge compared to the same period last year, according to an analysis from Challenger, Gray & Christmas released Thursday.
- Across industries, U.S. companies announced 806,383 job cuts so far this year, the highest year-to-date total since employers reduced their workforce by 1.85 million workers in 2020. In July alone, employers cut their workforce by more than 62,000, a 29% jump from June, the report said. Year over year, the cuts have risen 140%.
- The report furthers a trend from previous months this year. U.S. retailers shed nearly 76,000 jobs in the first five months of this year, a 274% jump from a year earlier, according to a previous Challenger, Gray & Christmas report released in June.
Dive Insight:
As the retail job market contracts, the analysis found companies in the sector also have not released hiring plans this year to date — a noteworthy development given that the holiday season is around the corner. Tariffs, inflation and economic uncertainty have prompted retailers to close stores and lay off employees, the report said.
Many of those same challenges are impacting industries more broadly as well.
“Closings of stores, units, or plants have led to 120,226 layoffs so far this year, while restructuring efforts have resulted in 66,879 job cuts. Bankruptcies accounted for another 35,641 layoffs,” according to the report.
Indeed, multiple major retailers have shuttered locations amid broader corporate restructurings. Between 2024 and February 2025, retailers closed more than 9,900 stores, but they only opened 7,700 locations during that period, a JLL analysis found.
While some retailers have issued pink slips to a fraction of their staff, others are shutting down most or all of their storefronts.
Forever 21 shuttered its corporate headquarters and laid off 700 people in Pennsylvania and California in March. The following month, Catalyst Brands, which operates J.C. Penney, slashed 9% of its corporate positions. In June, Hasbro and Lululemon each let go of about 150 corporate staffers.
After filing for Chapter 11 bankruptcy, Party City announced it would liquidate its entire store footprint late last year. Similarly, Joann announced in February that it would shutter all of its locations, kicking off going-out-of-business sales across its store footprint.
As some retailers reduce their staff headcount or close their doors permanently, others are hiring ahead of the holiday season. Spirit Halloween in June revealed plans to hire 50,000 seasonal workers to support its more than 1,500 locations.
