Federal workers account for more than one-third of last month’s tally.
Planned job cuts catapulted to their highest levels since the pandemic as U.S.-based employers navigate economic headwinds.
Global recruitment firm Challenger, Gray & Christmas reported Thursday that U.S. employers announced 172,017 layoffs in February, the highest monthly total since July 2020. It was also the largest tally for the month since the global financial crisis more than a decade ago.
This is up 245 percent from January’s 49,795 announced cuts and a 103 percent increase from the 84,638 planned layoffs at the same time a year ago.
In the first two months of 2025, employers have announced nearly 222,000 job cuts, the highest year-to-date count since 2009.
Efforts by the Department of Government Efficiency (DOGE), President Donald Trump’s task force to find efficiencies, eliminate waste, and trim the federal headcount, contributed to a sizable share of the February outcome, said Andrew Challenger, the firm’s senior vice president and workplace expert.
The government led all sectors last month, with Challenger reporting 62,242 job cuts in 17 different agencies, a more than 41,000 percent increase from the 151 planned reductions announced in February 2024.
“It appears the administration wants to cut even more workers, but an order to fire the roughly 200,000 probationary employees was blocked by a federal judge. It remains to be seen how many more workers will lose their federal government roles,” said Challenger in the report.
“When mass layoffs occur, it often leaves remaining staff feeling uneasy and uncertain. The likelihood that many more workers leave voluntarily is high.”
According to the Challenger data, retail and technology led the way in the private sector.
Retailers announced 38,965 job cuts, bringing the year-to-date total to 45,375. This is a 572 percent jump from the first two months of 2024.
Tech companies announced 14,554 job cuts in February. The year-to-date total is slightly more than 22,000, down 22 percent from last year.
“Private companies announced plans to shed thousands of jobs last month, particularly in retail and technology. With the impact of the Department of Government Efficiency [DOGE] actions, as well as canceled government contracts, fear of trade wars, and bankruptcies, job cuts soared in February,” Challenger added.
By Andrew Moran
