Companies may be entering a more cautious phase amid economic uncertainty, two reports from Challenger, Gray & Christmas revealed this month.
The number of CEO changes in October at U.S. companies fell 25% compared to September and is also down a third from the exits that occurred in October in 2024, according to a Dec. 2 report from the firm.
October is the fifth consecutive month that CEO exits were lower than the corresponding month from 2024, signaling a trend, the report noted, especially in the wake of record level departures prior to these reports.
“This reversal over the last couple months shows companies have likely lowered their tolerance for change,” Andy Challenger, workplace and labor expert for the firm, said in a statement.
CEOs stepping down was the most common reason behind CEO departures. “This category often signals planned successions, strategic transitions, or moves into advisory or board roles, and it continues to be the top driver of CEO turnover this year,” the report said.
A separate report published Dec. 4 by the firm revealed 71,321 job cuts in November at U.S. employers, up 24% from the same time last year. While cuts are down from the highs seen in October, it is the highest number for the month since 2022 and the eighth time this year that job cuts were higher than the corresponding month from 2024.
Job cuts in November have only breached 70,000 two other times since 2008 — and 2008 was one of those years, Challenger said. Year-to-date job cuts for 2025 are at the highest level since 2020, the report noted.
The reasons behind those cuts vary, with restructuring leading in November. Artificial intelligence has been cited for 54,694 layoff plans so far this year, with 6,280 of those cuts in November.
Hiring plans are also down from 2024 by about 35%, a figure that includes seasonal hiring.
“The increased spending over the Black Friday and the Thanksgiving weekend may give rise to hires in December right before the holiday. It’s unclear, however, if those positions will last into the New Year,” Challenger said.
A recent Indeed report also noted that while seasonal jobs surged in October, it remains unclear how much of that growth will stick around moving into 2026.