Are Top US Retail Stores Closures Signaling Economic Downturn?

By Prathapan Bhaskaran - May 28, 2025, 10:21 AM ET

Last Updated - Jun 10, 2025, 10:37 AM EDT

Layoffs Surge as Retailers Try to Tide over Tariff and Supply Chain Uncertainty

U.S. retail job cuts have surged in 2025 as the economy has been battling the tariff uncertainty that President Donald Trump has unleashed, hobbling global supply chains.

The sharp rise in layoffs this year is in contrast with the controlled downsizing that the country witnessed last year. One of the prompting factors may be the uncertainty from Trump’s tariff policies. While the Trump administration is announcing and pausing tariffs, supply chains are getting strained and brittle margins cracking for retailers as consumer confidence ebbs.

Top U.S. retailers are already on course to eliminate hundreds of jobs.

Walmart, Amazon to cut jobs

Walmart Inc. [WMT] is ready to eliminate approximately 1,500 corporate positions, primarily affecting global technology, U.S. e-commerce fulfillment, and advertising divisions. Additionally, 187 corporate jobs are set to be cut in Hoboken, New Jersey, by August 2025, according to reports.

Amazon.com Inc. [AMZN] plans to eliminate about 14,000 managerial positions globally by early 2025, a 13% reduction in its management workforce. Another 100 jobs were cut in the devices and services unit, including teams working on Alexa and Echo products.

While Costco Wholesale Corporation [COST] has planned no major job cuts in 2025, approximately 18,000 Costco workers are preparing for a potential strike over contract negotiations, highlighting ongoing labor discussions.

The Home Depot Inc. [HD] is expected to cut about 1,000 jobs from the company's exterior installation services division.

The Kroger Co [KR] has hinted that it intends to reduce approximately 200 positions at Kroger's data analytics subsidiary, 84.51°, as part of restructuring efforts. Further layoffs occurred at Kroger's corporate offices in Cincinnati, Ohio, impacting various departments.

Walgreens and Target to reduce roles

Walgreens Boots Alliance [WBA] has been the subject of reports indicating a move to reduce staff number this year. The acquisition of Walgreens by Sycamore Partners in March 2025 has set the stage for further job losses and store closures.

Target Corporation [TGT] may also see job cuts this year, especially from its warehouse in Locust Grove, Georgia, in January 2025.

CVS Health [CVS] (Retail Segment) has announced multiple rounds of layoffs in 2025, including: 796 positions nationwide between January and February; 183 employees, mostly remote workers, based out of its Wellesley office; and 55 more workers reporting to Hartford offices, with layoffs beginning in July.

Coresight Research says store closures this year could more than double to 15,000, according to a Forbes report.

Kohl's plans role cuts

Kohl’s Corp [KSS] plans to cut about 10% of its corporate workforce and shut 27 stores after 11 consecutive quarters of declining sales.

Macy’s [M] turnaround plans including closing 66 stores in 2025 that could lead to substantial staff layoffs.

Joann’s bankruptcy led to the closure of nearly 800 stores and about 19,000 employees were out of work.

Party City wound up costing 16,000 jobs, and Big Lots restructured cutting around 1,000 positions.

Forever 21 is headed to bankruptcy and approximately 700 will be looking for new jobs.

Some stores of Liberated Brands in Billabong, Quiksilver, and Roxy, will close all of its 122 locations and leading to the exit of about 1,040 retail workers and 360 corporate staff.

Wayfair’s [W] restructuring led to 340 tech workers’ layoff and Saks Global plans to terminate the services of 5% of its corporate staff as it merges with Neiman Marcus.