Management Consulting Services NAICS 541611

Jul 31, 2025 - US Job Losses By July Already Surpass Last Year's Total

• About 806,000 American jobs have been lost so far in 2025 (more than all the job losses from 2024), with the biggest culprits being the Department of Government Efficiency (DOGE), tariffs, and AI adoption. A report from career services company Challenger, Gray & Christmas found private and public employers slashed 62,000 jobs in July, a 30% jump from the month prior and a massive 140% boost year over year. The federal government cut the most jobs of any sector this year (about 292,000) this year, followed by technology (89,000 cuts), and retail (80,000). Government spending cuts not only affect federal workers, but DOGE cuts to grants and research spills into the non-profit sector, which lost 17,800 roles as a result, a whopping 413% increase from 2024. AI is the primary contributor to technology job losses, with workforce reductions in the sector up 36% from last year.
• Major corporations are getting smaller and managers have learned to not shy away from layoffs and other staff reductions, and in some cases actually tout them as positives, as AI adoption slims down corporate staff. Big companies have looked to startups and their ability to earn millions in revenue as inspiration for treating large staffs as an impediment rather than a benefit. Companies including Wells Fargo, Amazon, Union Pacific, Verizon, and Bank of America have cut thousands of jobs this year and report improved profitability. In addition to layoffs and displacement from AI, other means used to cut staff have included hiring freezes, combining jobs into new roles, or even leaving positions unfilled after employees resign. Management roles have taken the biggest hit in this new dynamic with middle managers increasingly being let go in favor of flatter organizations.

• US workers are increasingly putting in extra hours in the evening after their workday has ended as companies cut costs, slow new hiring, and ask existing employees to do more. According to data from Microsoft on the millions of workers who use its business applications, over the course of the last year meeting log-ins after 8 p.m. grew 16% and a third of workers returned to their inboxes after 10 p.m. Workers cite days filled with so many meetings, emails, and actual work that they don’t have enough time in the day to get everything done. Microsoft’s data showed the average worker gets 117 emails and 153 chats a day, and 30% of meetings cross time zones, all contributing to playing catch up after hours. The workloads have taken a toll with employee mentions of burnout on job site Glassdoor up 32% year over year in Q1, the highest level in 10 years.
• Revenue for management, scientific and technical consulting services rose 7% in 2024 over the previous year to $424.7 billion, according to the Bureau of Labor Statistics, amidst growing demand for AI and related data technology services. Companies are seeking out expensive consulting help to expand the use of what are fast becoming standard tools such as cloud computing, cybersecurity, and AI-based data analytics and automation. Less demands by the US government on private corporations to combat climate change has many firms taking sustainability initiatives into their own hands and increasing demand for management consultants to offer more services in the areas of climate strategy, supply chain transformation, and navigating the ever changing world of regulatory compliance throughout the world. Consulting firms are also expanding into managed IT services as a means to achieve lines of stable, recurring revenue.