A recent analysis indicated that October 2025 saw the most workers included in reductions-in-force (RIFs) in a single month in more than twenty years, as employers cut roles attributed largely to the rise of artificial intelligence (AI) and its potential impact on the labor market. With RIFs apparently on the rise due to AI and other economic pressures, employers may want to consider their legal obligations before joining the trend.

• A new analysis indicated that October 2025 marked a significant increase in reductions in force, highlighting the legal complexities employers must navigate in compliance with federal and state regulations.
• As companies consider mass layoffs influenced mainly by the integration of AI, it is crucial to address potential discrimination claims and explore alternatives like voluntary separation plans to mitigate risks.

Employers announced RIFs affecting more than 153,00 in October, a 175 percent increase from October 2024 and nearly triple the number in the prior month (a 183 percent increase from September 2025). RIFs have impacted industries across the board, but multiple major technology and retail companies have reportedly announced reductions in recent weeks.

While a RIF may be necessary for businesses to adapt to changing economic circumstances, implementing a mass RIF can be a complex process that involves compliance challenges with federal, state, and local regulations. Here are some considerations for employers.

Federal, State, and...

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