Workers in the United States are suffering an accelerated uptick in layoffs, with job losses carried out in both the private and public sectors. Cuts in federal agencies are responsible for over half the employment reductions this year, with over 150,000 job cuts reported in February and March. (intellizence.com, June 11)
Retail workers protest layoffs in 2019.
A recent report released by the executive outplacement firm Challenger, Gray & Christmas concluded that the number of job cuts announced in the first five months of 2025 increased 80% over the same period in the previous year. (New York Post, June 10)
The report also shows that “store closures in the U.S. have led to a huge 274% spike in retail layoffs” this year. In the last five months, retailers have announced 75,082 job cuts compared to the 20,276 job losses during this same period last year. (The Independent, June 10)
According to Andrew Challenger, senior vice president of Challenger, Gray & Christmas: “Tariffs, funding cuts, consumer spending and overall economic pessimism are putting intense pressure on companies’ workforces. Companies are spending less, slowing hiring and sending layoff notices.” (finance.yahoo.com, June 11) Such right-wing political policy is one of the driving forces behind massive job losses.
Oppressed workers suffer the most
Regardless of job or profession, Black, Brown, Indigenous, women, gender-oppressed and LGBTQIA2S+ workers suffer the most due to mass layoffs. Young people, seniors and workers with disabilities also endure extreme hardship from inflated job losses.
Next to the federal sector, retail, entertainment and tech workers are the second hardest hit sections of the workforce. Since January, many retail chains and department stores have either closed several stores nationwide or they have ceased operations completely.
Among the stores that have and are continuing to close locations are Macy’s, Kohl’s and JCPenney, as well as Walgreens, CVS and Rite Aid. Walmart — which is the largest employer in many rural communities — has also announced nationwide downsizing, especially in their tech department. Several other department store chains, including Party City, Joann Fabrics and Forever 21, have closed all their shops.
Other companies that have unleashed mass terminations this year are UScellular, Morgan Stanley, Amazon, John Deere and United Parcel Services. Just this month, Procter & Gamble announced plans to eliminate approximately 7,000 non-manufacturing positions. This decision is expected to impact 15% of its office-based workforce over the next two fiscal years. Meanwhile, Procter & Gamble remains one of the world’s largest consumer goods companies.
Workers in the entertainment industry are also experiencing a higher than usual number of job losses. Like the tech employers, entertainment industry bosses are finding ways to replace workers with Artificial Intelligence (AI) and other forms of automation. Disney, Discovery, Warner Brothers and Paramount are among the companies that are gutting their workforces.
U.S. President Donald Trump and his fascistic regime are the main culprits behind the economic homicide aimed at hurting federal employees. The Department of Government Efficiency (DOGE), set up by billionaire Elon Musk in January, was largely responsible. According to a tally conducted by Reuters in May, over 260,000 federal workers have been fired, taken buyouts or have been forced to retire early since Trump has taken office a second time. (Reuters, May 2)
Even with Musk gone from the White House, working-class and oppressed people are now concerned that if Trump’s “big, beautiful bill” passes the U.S. Senate, there will inevitably be an economic massacre that will destroy thousands of more jobs. Unless Trump’s proposed Medicaid and Medicare cuts are eliminated, hundreds of rural hospitals, including unionized facilities that this author serves as a union staff representative, are projected to close permanently. Hospital closures in rural areas will devastate whole communities.
Marxist-Leninist response
The capitalist U.S. ruling class constantly seeks ways to expand and maximize profits. Capitalist bosses often have administrative and mid-level managers tell workers they are simply “cutting costs” to justify mass terminations.
Marxist-Leninists recognize that unemployment is a key feature of capitalism, because “anarchy of production” is an inherent characteristic of the profit driven system. Friedrich Engels and Karl Marx used the term “reserve army of labor” in describing the pool of unemployed workers that exists as a result of technological advancements and economic crises.
In contrast to the capitalist U.S., socialist China has undergone a drop in unemployment rates over the last few months. Various studies reveal that unemployment in the People’s Republic of China decreased each month since February. (tradingeconomics.com, April 16) Under the disciplined leadership of the Communist Party, China embraces central economic planning, as opposed to the “anarchy of production” rooted in capitalist economies.
Marxist Leninists see jobs and secure employment as personal property rights to which every worker is entitled. The best way for working people to successfully defeat the ongoing economic slaughter is for workers and oppressed people to collectively fight the fascist far right and the billionaires’ class through a militant, united front.