The departure of chief executive officers across the United States is on the rise, with California recording the highest turnover rates in 2025. A report by workplace consultants at Challenger, Gray & Christmas reveals that 1,650 CEOs left their positions during the first nine months of the year, indicating a significant trend of instability at the top management levels.
This rise represents an increase from the previous year, when 1,652 CEOs departed in the same period. In comparison to the preceding nine years, which averaged 1,004 CEO exits, the current figures reflect a staggering 64% increase in executive turnover. Such volatility points to heightened challenges for businesses amid uncertain economic conditions.
California’s Executive Landscape
California stands out as the state with the highest rate of CEO departures, witnessing 194 executives exit their roles thus far in 2025. Texas follows closely with 132 departures, while North Carolina records 102, Florida 98, and Pennsylvania 75. California’s position is not unexpected, given its status as the largest economy in the United States, hosting a workforce of approximately 18 million, which constitutes around 11% of the total U.S. workforce of 159 million.
The state’s prominence is further reflected in its representation in the S&P 500 index, where California-based companies account for 11%. Additionally, 13% of the fastest-growing companies in America, as recognized by the INC. 5000, are located in California. Thus, the state’s share of CEO departures, which constitutes 12% of the national total, aligns with its significant economic influence.
Despite this, California’s increase in CEO turnover is not the largest in the country. The state experienced a modest rise of five departures compared to the previous year. In contrast, Texas saw an increase of 28, Georgia 24, and Indiana 18. On the other hand, Massachusetts reported the largest decline, with 26 fewer CEO exits.
Layoffs and Economic Challenges
In addition to the rising number of CEO departures, California also faces significant layoffs. The initial ten months of 2025 have seen 158,700 workers affected by announced staffing cuts at major employers in the state. This figure represents the second-largest number of layoffs nationwide, accounting for 14% of the total 1.1 million layoffs across the United States.
The national epicenter for layoffs was Washington, D.C., with a staggering 303,800 job cuts. Following California, New York reported 81,701 layoffs, Georgia 78,049, and Washington state 77,700. When comparing layoff figures, Texas recorded 46,400 planned cuts, while Florida had 22,800.
California’s planned layoffs in 2025 exhibit a 16% increase compared to the previous year, while national planned layoffs have risen by only 4%. These figures illustrate the regional disparities in economic impact, highlighting the challenges businesses face in the current climate.
The trends in CEO turnover and layoffs underscore the precarious nature of the job market, particularly within California’s executive landscape. As companies navigate these turbulent times, the scrutiny on leadership and strategic decision-making has never been more pronounced.
