Country sees highest monthly layoffs since July 2020 during pandemic
Job cuts in the U.S. soared to 172,017 in February, marking the highest February total since 2009, when 186,350 layoffs were announced.
This also represents the largest monthly total since July 2020, when the country saw 262,649 job losses, according to a report released Thursday by Challenger, Gray & Christmas.
The surge in layoffs reflects a 245% increase from January, when 49,795 job cuts were announced, and a 103% jump from February 2024, which recorded 84,638 layoffs.
So far this year, the number of job cuts has reached 221,812, the highest year-to-date (YTD) total since 2009, when 428,099 layoffs were planned. Compared to the 166,945 job cuts reported during the same period in 2024, this marks a 33% increase.
"Private sector employers eliminated thousands of jobs last month, especially in Retail and Technology. The impact of the Department of Government Efficiency [DOGE] actions, combined with the cancellation of government contracts, economic uncertainty, and concerns over trade wars, contributed to February's sharp increase in job cuts," said Andrew Challenger, Senior Vice President at Challenger, Gray & Christmas.
Federal government & DOGE actions: The federal government saw the highest job losses in February, with 62,242 announced layoffs across 17 agencies. Since the beginning of 2025, government layoffs have totaled 62,530—a staggering 41,311% increase compared to just 151 federal job cuts through February 2024.
"The administration appears intent on further reducing the federal workforce, but an order to dismiss nearly 200,000 probationary employees was halted by a federal judge. It's uncertain how many additional government jobs will be eliminated," Challenger noted.
"Mass layoffs often create instability, leading to voluntary departures as employees grow anxious about job security," he added.
Retail: Retailers announced 38,956 job cuts in February, bringing the 2025 total to 45,375—a 572% increase from the 6,751 layoffs in the first two months of 2024. Major brands such as Macy’s and Forever 21 have been among those downsizing.
Tech: Although still a major contributor to job cuts, the technology sector saw fewer layoffs this year compared to 2024. In February, tech companies announced 14,554 job cuts, bringing the 2025 total to 22,042—down 22% from the 28,218 layoffs reported during the same period last year.
Services: Reported 13,804 job cuts so far this year, closely aligning with the 13,503 job losses recorded in early 2024.
Consumer products: Companies in this sector announced 12,947 layoffs through February, with 10,625 occurring last month—a 95% increase from the 6,629 cuts reported by this time in 2024.
Media: Layoffs in media have dropped 67% year-over-year, with 1,557 cuts in 2025 compared to 4,685 in early 2024.
News: Job losses in news media have also fallen significantly, down 82% from 1,754 cuts in 2024 to just 324 layoffs so far in 2025. This is the lowest figure for January-February since 2022.
Despite widespread job cuts, hiring announcements have risen significantly, Challenger, Gray & Christmas said. Companies announced 34,580 new hires in February, bringing the year-to-date total to 40,669—a 159% increase from the 15,693 hiring plans announced in early 2024.
This marks the highest February hiring figure since 2022, when companies announced 215,127 new positions.
While layoffs are rising, the job market remains dynamic, with certain sectors still expanding their workforce.
