Layoffs are rising in Arizona.
So far in 2025, companies have announced 5,750 job cuts. That’s already more than in the first half of 2024. The Arizona Office of Economic Opportunity tracks these through WARN and non-WARN notices. WARN applies to companies with 100 or more employees. These notices give workers at least 60 days' notice before layoffs.
Major cuts this year include 829 jobs at Nikola Corp. Nikola makes zero-emissions trucks. After entering bankruptcy, some of its assets were bought by Lucid Group. Lucid has offered jobs to some laid-off Nikola workers.
Overall, 17 of this year’s layoffs involved 100 or more jobs. Last year, only 10 layoffs reached that size by mid-year. In 2024, the biggest cut came from 99 Cents Only, which closed 39 Arizona stores and cut 1,400 jobs. Other big layoffs last year were at Kalil Bottling (546 jobs) and Northrop Grumman (543 jobs).
Arizona’s unemployment rate rose to 4.1% in April 2025. That’s up from 3.4% a year earlier. Phoenix's rate is lower at 3.1%, but it’s also climbing. Still, the state added 18,000 jobs over the past year.
Why is the jobless rate rising while jobs are growing? Arizona’s labor force is expanding. More people are moving in. More are looking for work. That pushes the unemployment rate up even if the economy is growing.
Trade tension, market swings and recession fears shook the economy earlier this year. Things have calmed somewhat. But job cuts continue, and economic anxiety remains.
More updates will follow as new data comes in.