US employers in February announced plans to reduce headcount at the fastest pace since early in the pandemic, led by cuts in the government sector as the Trump administration moved to shrink the federal workforce.
Job-cut announcements totaled 172,017 in February, a 103% increase from last year and the most since July 2020, according to data released Thursday from outplacement firm Challenger, Gray & Christmas. It also marks the highest number reported in a February since 2009.
The federal government was responsible for the largest share of cuts, at more than 62,000. The retail and technology sectors also reported plans to dismiss significant numbers of workers.
Layoffs were relatively low in 2024, but actions taken by the administration’s new Department of Government Efficiency to reduce federal headcount have left thousands of government employees and contractors out of work. Multiple large companies, including HP Inc. And Walt Disney Co., have also recently announced job cuts.
The DOGE actions have raised concerns among forecasters that unemployment could climb in 2025.
“Private companies announced plans to shed thousands of jobs last month, particularly in retail and technology,” said Andrew Challenger, senior vice president and workplace expert for the firm. “With the impact of the Department of Government Efficiency actions, as well as canceled government contracts, fear of trade wars, and bankruptcies, job cuts soared in February.”
Although employers intend to lay off more workers, the data also suggests intentions to hire rose. Companies announced plans to hire more than 34,000 people last month, the most for a February since 2022.