Layoffs of U.S. staff surged in February to ranges that have not been recorded for the reason that final two recessions amid the Trump administration’s mass job cuts at federal businesses, canceled contracts and fears of a widening commerce conflict.
A report by world outplacement agency Challenger, Grey & Christmas launched Thursday mentioned that deliberate job cuts surged 245% in February to 172,017 final month. That is the very best degree since July 2020, when the financial system was reeling from restrictions associated to the COVID pandemic, and the very best complete for February for the reason that Nice Recession in 2009.
The biggest share of layoffs was within the authorities, with Challenger monitoring 62,242 introduced job cuts throughout 17 totally different federal businesses. The federal government has laid off roughly 62,530 staff within the first two months of 2025 – a 41,311% improve in contrast with a 12 months in the past.
“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,” mentioned Andrew Challenger, senior vp at Challenger, Grey & Christmas. “It remains to be seen how many more workers will lose their federal government roles.”
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“When mass layoffs occur, it often leaves remaining staff feeling uneasy and uncertain. The likelihood that many more workers leave voluntarily is high,” Challenger added.
Retailers additionally introduced 38,956 job cuts to deliver the sector’s complete to 45,375 for the 12 months. That is a 572% improve from the 6,751 retail job cuts that had been introduced within the first two months of 2024.
Know-how corporations proceed to be a number one sector for job cuts, although they’re down from a 12 months in the past. Tech corporations introduced 14,554 job cuts in February for a complete of twenty-two,042 in 2025 – a determine that is down 22% from the 28,218 cuts in the identical interval a 12 months in the past.
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To this point in 2025, employers have introduced 221,812 job cuts – the very best year-to-date complete since 2009, when 428,099 job cuts had been deliberate. That determine is 33% larger than the 166,945 job cuts introduced in the identical interval in 2024.
“Private companies announced plans to shed thousands of jobs last month, particularly in retail and technology,” Challenger mentioned. “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.”
When it comes to why corporations are chopping jobs, the influence of DOGE was the main purpose and 63,583 layoffs, each within the federal workforce and amongst authorities contractors, had been attributed to it.
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Market and financial circumstances had been attributed to 36,257 cuts, whereas chapter was the rationale for 35,411 cuts and jobs and retailer, unit, or plant closures accounted for 28,095.
Reuters contributed to this report.
