Although lower-level workers are often hit hardest by major economic and political changes, the people at the top of the corporate ladder aren’t immune from challenging times. CEO turnover rates for the month of January reached a new record in 2025, with 222 CEOs stepping down from their posts, according to data from Challenger, Gray & Christmas, a global outplacement and executive coaching firm. That’s 14% higher than the same month last year, and the highest record for January since the company started tracking the metric in 2002. The previous record for the month was 2020, when 219 CEOs left their positions.
“Due to the ongoing political and economic uncertainty, many companies may find now to be a prudent time to change leadership,” Andrew Challenger, senior vice president and labor expert for Challenger, Gray & Christmas, said in a statement accompanying the data.
The government and nonprofit sector is leading when it comes to industry exits, with 51 CEO transitions in January. That’s a 6.3% year-over-year increase compared to the same month last year, which had 48 CEO exits. However, the departures in January 2025 were down 7.3% compared to December 2024, as companies likely fast-tracked leadership changes ahead of the administration change in Washington. The tech, entertainment, and finance industries also saw notable year-over-year CEO departures for the month, with increases of 19%, 100%, and 67% respectively.
Notably, many companies are making temporary changes when it comes to CEO turnover as they find their footing in a new political climate. In January 2025, 19% of new leaders were named on an interim basis, compared to 6% in January 2024.
“Companies are grappling with the actions of a new administration that is cutting federal spending and eliminating contracts while market fluctuations and new technologies continue to roil company plans,” Challenger said.
But he warned that while interim placements make sense during times of upheaval, they come at a cost.
“Teams often struggle to coalesce under interim leadership due to the uncertainty surrounding it—how long the tenure will last, whether the leader can effectively manage the existing team, and how team members will be evaluated or retained. This ambiguity can create anxiety and a sense of confusion,” he said. “In times like these, it’s wise for companies to continuously look at and update their succession plans.”