Last Week Layoffs in USA: Key Updates for July 2025

July 20, 2025 – The U.S. job market faced significant turbulence last week as layoffs surged across multiple sectors, driven by economic pressures and government-driven workforce reductions. Below is a comprehensive overview of the latest layoffs in the USA, optimized for readers seeking timely and actionable insights.

Federal Government Layoffs Under DOGE Initiative

The Department of Government Efficiency (DOGE), led by Elon Musk under the Trump administration, continued its aggressive push to downsize federal agencies. Last week, the State Department announced the layoff of 1,353 employees, including 1,107 civil service and 246 foreign service workers, as part of a broader reorganization plan. This move, described as a “reduction-in-force” (RIF), aims to eliminate redundant offices and streamline operations, though critics argue it undermines U.S. diplomatic capabilities. The layoffs followed the Supreme Court’s decision to lift a lower court injunction, allowing agencies to execute long-planned workforce cuts.

Other federal agencies, including the Department of Agriculture, Commerce, and Health and Human Services, are also reviewing layoff plans submitted to the White House, with an estimated 275,000 federal civil service jobs targeted for reduction in 2025. These cuts, part of a broader effort to reduce the federal workforce by 12%, have sparked lawsuits from unions citing violations of due process and civil service protections.

Tech Sector Layoffs Continue to Rise

The tech industry saw significant layoffs last week, with Intel announcing plans to cut 2,400 jobs in Oregon, nearly five times the previously reported 500, as part of a restructuring ahead of its Q1 2025 earnings call. This follows a broader trend, with 96,861 tech workers laid off across 413 companies in 2025, according to TrueUp. Other notable tech layoffs include:

• Microsoft: Approximately 6,000 positions, or 3% of its workforce, were cut, focusing on reducing management layers.
• CrowdStrike: The cybersecurity firm announced 500 layoffs, citing AI-driven operational changes.
• Block: Jack Dorsey’s fintech company, which operates Square and CashApp, laid off nearly 1,000 employees in its second major reduction in over a year.

These layoffs reflect a shift toward AI and automation, with companies like CrowdStrike and Klarna citing AI as a factor in reducing headcounts. The tech sector alone has seen a 35% year-over-year increase in layoffs, totaling nearly 75,000 in 2025.

Retail and Healthcare Sectors Hit Hard

Retail layoffs surged, with over 64,000 jobs eliminated in the first four months of 2025, a 296% increase from the same period in 2024. Last week, Walmart announced plans to cut 50-100 positions in California and 250-500 in New Jersey as part of a larger restructuring. Retail bankruptcies, including Joann Fabrics (19,000 jobs lost) and Party City (16,000 jobs), have contributed significantly to this trend.

In healthcare, Optum, a UnitedHealth Group company, announced the closure of clinics across multiple states, laying off 524 employees in California from September 2025 through January 2026.

Other Notable Layoffs

• State Department: As mentioned, 1,353 employees were laid off, marking the first major agency to execute RIFs post-Supreme Court ruling.
• Chicago Public Schools: Nearly 1,500 teachers and staff were laid off, reflecting budget constraints in the education sector.
• Daimler Truck North America: Approximately 600 workers in Gaston County were affected, driven by economic pressures.

Economic Context and Outlook

Last week’s layoffs contributed to a three-month high in U.S. jobless claims, reaching 242,000, as reported by posts on X. The Challenger, Gray & Christmas report noted a 47% year-over-year increase in job cuts for May 2025, with nearly 100,000 announced, driven by tariffs, funding cuts, and economic pessimism. Despite a slight decline in unemployment claims to 211,000 by late December 2024, experts predict layoffs may persist into 2025 due to ongoing economic uncertainties, including Trump’s tariff policies and AI-driven workforce shifts.

However, some analysts suggest that deregulation and corporate tax cuts under the new administration could delay layoffs in certain sectors, while AI and sustainability trends may create new job opportunities for skilled workers.

What to Do If Facing a Layoff

For those affected, experts recommend:

• Review Severance Packages: Understand severance pay, unused leave, and benefits like health savings accounts. Negotiate for better terms if possible.
• Explore Career Transition Programs: Federal employees can access the Career Transition Assistance Program or search for opportunities on USAJobs.gov.
• Budget Wisely: Cut non-essential spending, prioritize debt payments, and use emergency savings strategically.

Stay Informed with ClickUSANews

The layoff wave in 2025 underscores the evolving U.S. job market. Stay updated with ClickUSANews for the latest economic trends, job market insights, and tips to navigate these changes. Subscribe to our newsletter for real-time updates and follow us on social media for breaking news.

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