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US employers announced 172,017 layoffs in February, the highest total since the height of the COVID-19 pandemic in July 2020, according to a report released by outplacement firm Challenger, Gray & Christmas on Thursday, Mar. 6. Last month's cuts were 245 percent higher than January and more than double the job losses from February 2024.
February marked a dramatic spike in job losses, as businesses and federal agencies scrambled to downsize amid economic uncertainty, trade tensions, and budget cuts.
"Private companies announced plans to shed thousands of jobs last month, particularly in retail and technology," said Andrew Challenger, the firm's senior vice president and a workplace expert. "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."
Companies have cut 221,812 jobs in 2025. That's a 33-percent increase from early 2024 and the worst start to a year since 2009.
The federal government led all sectors in job losses, with 62,242 layoffs across 17 agencies in February — accounting for nearly a third of all job cuts. Since the start of 2025, government job losses have skyrocketed 41,311 percent from just 151 cuts in early 2024.
The layoffs are part of the Trump administration's gutting of the federal government, an effort led by billionaire and DOGE's de facto leader Elon Musk.
"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," Challenger said. "It remains to be seen how many more workers will lose their federal government roles. When mass layoffs occur, it often leaves remaining staff feeling uneasy and uncertain. The likelihood that many more workers leave voluntarily is high."
Retailers followed with 38,956 layoffs in February, bringing the sector's total to 45,375 job cuts this year. That's a 572-percent increase from the same period in 2024.
Technology companies also saw significant job losses, with 14,554 layoffs in February. While the sector has announced 22,042 cuts in 2025, that figure is actually 22 percent lower than early 2024.
The East region has been hit hardest, with job cuts surging 109 percent year-over-year. Layoffs in Washington, DC, exploded from 60 in early 2024 to 61,795 in 2025, while New Jersey’s cuts jumped from 1,088 to 16,918.
New York, however, saw a decline, with job losses dropping 49 percent from 35,279 to 17,859. The Massachusetts job market saw a slight decrease of eight percent, while Pennsylvania was relatively stable with a two-percent increase.
The Midwest saw a 61-percent increase in layoffs, led by Ohio, where job cuts jumped 519 percent from 3,651 to 22,592. The West region experienced an overall 10-percent decline in layoffs, though Texas saw a 154-percent increase, rising from 5,096 to 12,916.
The South had the sharpest decline, with layoffs dropping 40 percent. Georgia saw the biggest improvement, with cuts plummeting from 13,371 to just 267, but Florida and Tennessee more than doubled their layoff numbers.
DOGE has been the biggest driver of job losses in 2025. The organization not approved by Congress is responsible for at least 63,583 layoffs, including both government employees and private-sector contractors.
Other major reasons included market conditions (36,257 cuts), bankruptcies (35,411), and store or plant closures (28,095).
The surge in layoffs comes as job growth slows and economic uncertainty deepens, with private-sector hiring in February falling to its lowest level in seven months. At the same time, escalating trade tensions and new tariffs on imports from Canada, Mexico, and China are raising fears of higher costs for businesses and consumers, adding to concerns about a broader economic downturn.
Despite widespread layoffs, some industries are still adding jobs. Employers announced plans to hire 40,669 workers this year, up 159 percent from early 2024.
The entertainment and leisure industry leads hiring efforts, planning to add 28,000 new workers, while the automotive sector announced 4,831 new positions.
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