California Leads U.S. in CEO Departures as Job Market Tightens

The number of chief executive officers departing their positions has surged in California, leading the nation in CEO exits for 2025. According to data from workplace consultants at Challenger, Gray & Christmas, a total of 194 CEOs in California left their roles in the first nine months of the year. Nationally, 1,650 CEOs lost their jobs during the same period, marking a significant trend in corporate leadership changes.

This increase in CEO turnover is part of a longer-term trend, with the 2025 figures reflecting a rise in corporate leadership changes over the past two years. In comparison, 1,652 CEOs exited their positions in the same timeframe in 2024. Historical data shows that the median number of CEO departures in the previous nine years was significantly lower at 1,004, indicating a 64% increase in leadership turnover.

California’s Economic Impact and CEO Turnover

California’s position as the state with the highest CEO exits is not unexpected, given its status as the largest economy in the United States. The state boasts around 18 million workers, making up 11% of the nation’s total labor force of 159 million. Furthermore, California companies account for 11% of the S&P 500 index and represent 13% of the INC. 5000 list of America’s fastest-growing companies.

Despite being the leader in CEO departures, California’s increase in turnover is modest, with only five more CEOs leaving compared to last year. In contrast, Texas saw the largest jump with an additional 28 CEOs exiting, followed by Georgia with 24 and Indiana with 18. Conversely, Massachusetts experienced the largest decline, with 26 fewer CEOs leaving their posts.

In addition to CEO turnover, California’s share of announced layoffs has also risen. As of October 2025, the state recorded plans for 158,700 workers to be laid off, representing 14% of the 1.1 million layoffs across the country. This figure makes California the second-largest source of employment cuts, trailing only Washington, D.C., which saw 303,800 layoffs.

National Layoff Trends and Economic Outlook

California’s layoff plans for 2025 have increased by 16% compared to the previous year, while national layoffs have only risen by 4% during the same period. Following California in terms of layoffs are New York with 81,701 planned cuts, Georgia with 78,049, and Washington state with 77,700. Texas ranks seventh with 46,400 planned layoffs, and Florida is ninth with 22,800.

The data presents a challenging picture for California’s job market, with significant implications for its workforce and businesses. As companies continue to navigate economic uncertainties, the trend in CEO departures and layoffs may signal broader shifts in corporate strategies and employment practices.

This analysis of CEO turnover and layoffs reflects the ongoing transformation within the corporate landscape, highlighting a period of volatility that could impact both business operations and employee stability in the months ahead.