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US employers announced 275,240 job cuts in March, outplacement firm Challenger, Gray & Christmas said on Thursday, Apr. 3. That's the third-highest monthly amount since Challenger began tracking layoffs in 1989, only surpassed by the height of the COVID-19 pandemic in April and May of 2020.
So far in 2025, employers have announced 497,052 job cuts — the highest total to start a year since 2009. That’s a 93% increase from the same period in 2024.
March's layoffs marked a 60% jump from February and more than triple the number from March 2024. More than 216,000 cuts came from the federal government, where Musk has spearheaded an effort to gut agencies as de facto head of the Department of Government Efficiency.
DOGE has been responsible for more than 280,000 announced layoffs across 27 agencies.
"Job cut announcements were dominated last month by Department of Government Efficiency plans to eliminate positions in the federal government," said Andrew Challenger, the firm's senior vice president. "It would have otherwise been a fairly quiet month for layoffs."
Musk, who holds a temporary government post with DOGE, has overseen the most aggressive federal downsizing effort in decades. His cuts have impacted everyone from longtime civil servants to contract workers — despite public backlash, bipartisan criticism, and many lawsuits.
The Tesla CEO is reportedly close to the end of his 130-day federal service window and may soon step down from DOGE. Even after leaving DOGE, he's expected to remain a close adviser to Trump.
Musk's potential departure comes immediately after a huge political defeat in Wisconsin, where Democratic-backed Supreme Court candidate Susan Crawford beat Musk-endorsed challenger Brad Schimel. Musk and groups he supported spent at least $21 million in what he called an election to "decide the future of America and Western civilization."
The 53-year-old has also faced global boycotts and vandalism targeting Tesla, which has seen a steep drop in vehicle deliveries and stock value. Protesters blame Musk for his growing political reach, including support for far-right groups and his role in mass federal layoffs.
The job losses aren't limited to government roles.
Retailers announced 11,709 cuts in March and 57,804 for the quarter — a 370% increase over the same period in 2024. Tech firms cut 15,055 jobs in March, while consumer goods makers have cut more than 14,600 jobs so far in 2025.
Automakers laid off more than 7,100 workers, up 28% from the first quarter of 2024.
"Several sectors will be impacted by tariffs going forward, including consumer, auto, and retail," Challenger said. "These sectors are already cutting more workers than last year."
Trump's new tariff package — which includes a 10% baseline tax on all imports, a 25% duty on foreign vehicles, and sharply higher rates on countries like China, Germany, and Japan — is fueling economic uncertainty.
Stocks cratered on April 3 when the markets opened after Trump's announcement. The Dow Jones Industrial Average fell more than 4% (about 815 points), the S&P 500 tumbled 3.4%, and the Nasdaq Composite dropped around 3%.
The Northeast saw the sharpest rise in job losses, with cuts jumping 277% year-over-year — from 94,406 in early 2024 to 355,992 so far in 2025. Washington, DC, alone accounted for 278,711 of those cuts as agencies based in the capital bore the brunt of DOGE's purge.
New Jersey, Pennsylvania, and Massachusetts also saw steep increases in February. New York experienced a temporary dip but remains vulnerable amid ongoing federal contract cancellations.
Hiring is also slowing.
Companies announced just 13,198 new jobs in March, bringing the year's total to 53,867 — the weakest first quarter hiring figure since 2012. That total includes 3,972 federal layoffs that were later reversed, though it's unclear how many workers actually returned to their roles.
Separately, 24,000 probationary employees were recalled by court order, but the broader legal fight over their terminations is ongoing.
The new numbers reflect growing concerns about a slowing economy.
The Conference Board said consumer confidence is at its lowest point in more than a decade. Homebuyers, manufacturers, and investors are all bracing for a prolonged downturn.
Two-thirds of Americans expect unemployment to rise in 2025 – the highest number since the global financial crisis, according to a University of Michigan survey.
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