Store closures in the U.S. have led to a huge 274% spike in retail layoffs so far this year, a new report says.
In the first five months of 2025, retailers announced 75,082 job cuts compared to 20,276 during the same period the year before, according to business and executive coaching firm, Challenger, Gray & Christmas Inc.
The figures include major job losses at retail giants like Macy’s, which is set to close 150 stores across the U.S. after sales dropped by a staggering $21.3 billion. Some 66 of the closures were confirmed in January. Macy’s is one of America’s most familiar brands but in total will be shuttering around one-third of its underperforming locations by the end of 2026.
Earlier this year, fabric and crafts retailer Joann announced it was going out of business, following bankruptcy, and was forced to shut down all 800 of its stores. The Ohio-based retailer had been a destination for generations of quilters, knitters, and lovers of craft projects for 80 years.
And pharmacy giant CVS recently announced plans to close 270 stores nationwide in 2025. A spokesperson for the brand said several factors went into the decisions to close the locations, including “population shifts and consumer buying patterns.”
JCPenney, Forever 21 and Walgreens are among the other high-profile chains that have announced store closures in 2025.
Retail is the second-leading industry to suffer job cuts this year, behind the federal government, which has seen over 270,000 jobs slashed, thanks to Elon Musk’s Department of Government Efficiency. The tech industry saw the third largest number of job losses with 74,716 cuts, up from 55,207 from this time last year.
The report blamed the mass lay-offs on a multitude of factors, including the sweeping tariffs imposed by President Donald Trump earlier this year.
The Challenger report added that U.S. based employers overall announced 93,816 job cuts last month. That’s up from 63,816 in May, 2024.
“Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies’ workforces,” said Andrew Challenger, senior vice president of Challenger, Gray & Christmas. “Companies are spending less, slowing hiring, and sending layoff notices.”
Last month it was reported that the U.S. economy shrank 0.2% from January through March, the first drop in three years, as Trump’s trade wars disrupted business.
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