US-based employers announced 172,017 job cuts in February – the highest February total since 2009.
The data from Challenger, Gray & Christmas showed job cuts leapt by 245% compared to January’s 49,745.
It’s the highest total since 186,350 cuts were recorded in 2009.
It’s also the largest monthly total since July 2020, when companies slashed 262,649 jobs.
Year -on – year, February cuts rose 103% from 84,638 in February 2024.
Total job cuts for 2025 stand at 221,812 so far — the highest year-to-date level since 2009.
Government Layoffs Drive the Spike
The Government sector led all industries for layoffs in February, with 62,242 job cuts across 17 federal agencies.
So far this year, the Government has cut 62,530 jobs — a staggering 41,311% increase from the 151 federal job cuts announced in early 2024.
According to Andrew Challenger, Senior Vice President at Challenger, Gray & Christmas, said:
“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.”
“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.”
Retail and Technology Cuts Surge
Retail was the second hardest-hit sector in February, with 38,956 job cuts.
That brings the total for 2025 so far to 45,375 — a 572% jump compared to 6,751 retail layoffs in early 2024.
Technology also saw significant cuts, with 14,554 tech jobs slashed in February.
However, technology layoffs are actually down 22% compared to the same period last year, with 22,042 cuts so far in 2025 versus 28,218 in early 2024.
Other Industries Impacted
- Services: 13,804 job cuts so far this year, nearly identical to the 13,503 in early 2024.
- Consumer Products: 12,947 job cuts through February, up 95% from 6,629 in early 2024.
- Media: 1,557 job cuts so far in 2025, a 67% drop from 4,685 last year.
- News: 324 job cuts year-to-date — down 82% from 1,754 in early 2024, and the lowest since 2022.
Top Reasons for Layoffs in 2025
According to the report, the top reasons companies gave for job cuts include:
- “DOGE Impact” — 63,583 cuts directly tied to the Department of Government Efficiency (DOGE) and related downstream effects like funding loss for non-profits.
- Market and Economic Conditions — 36,257 cuts.
- Bankruptcies — 35,411 cuts.
- Store, Unit, or Plant Closures — 28,095 cuts.
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Where Layoffs Are Happening
Challenger tracks cuts based on company headquarters unless a specific location is mentioned.
So far in 2025, layoffs are hitting some regions harder than others:
East Region
- 107,109 job cuts so far, up 109% from 2024.
- District of Columbia: 61,795 cuts (up from just 60 last year).
- New Jersey: 16,918 cuts (up from 1,088).
- New York: 17,859 cuts (down 49% from 35,279).
Midwest Region
- 41,506 cuts so far, up 61% from 2024.
- Ohio: 22,592 cuts (a 519% increase).
- Minnesota: 2,079 cuts (up 135%).
- Illinois and Michigan: Both saw declines of 22% and 10%, respectively.
West Region
- 57,269 cuts so far, down 10% from 2024.
- Texas: 12,916 cuts (a 154% increase).
- California: 28,635 cuts (down 17%).
South Region
- 15,928 cuts so far, down 40% from 2024.
- Georgia: 267 cuts (down 98%).
- Florida: 5,987 cuts (up 74%).
- Tennessee: 4,202 cuts (up 437%).
Hiring Plans Surge in February
Despite the spike in layoffs, companies announced plans to hire 34,580 workers in February. That brings total hiring plans for 2025 to 40,669 — a 159% jump from the 15,693 hires announced in early 2024.
- Entertainment/Leisure: 28,000 hires planned.
- Automotive: 4,831 hires planned.
- Technology: 3,225 hires planned.
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What Comes Next for the US Job Market?
The February report highlights sharp increases in both layoffs and hiring plans, creating a mixed picture for 2025.
As the effects of DOGE actions, government spending cuts, and economic uncertainty continue to ripple through the economy, businesses are making drastic changes to their workforce strategies.
The months ahead will reveal whether these trends stabilize — or if further cuts are coming.
FAQs
The US job market is experiencing a complex situation rather than a clear-cut job shortage.
Some industries are shedding jobs at record rates, particularly in government, retail, and technology.
In February 2025 alone, US employers announced over 172,000 job cuts, the highest February figure since 2009.
At the same time, hiring plans are also surging, with companies planning to add more than 40,000 jobs this year, especially in sectors like entertainment, leisure, and automotive.
This creates a mixed picture — some areas are struggling with layoffs while others are actively hiring. The shifts are driven by factors such as economic uncertainty, government spending changes, technological shifts, and evolving consumer demand.
Rather than an overall job shortage, the US labor market is undergoing a significant reshuffling, where demand for workers depends heavily on industry, skill level, and geographic location. Some fields are still short on workers, while others are reducing staff rapidly.
The government sector currently leads all industries in layoffs in the US. In February 2025 alone, federal agencies announced more than 62,000 job cuts, bringing the year-to-date total to 62,530.
This represents a massive 41,311% increase compared to the same period in 2024, when just 151 federal job cuts were reported.
These layoffs stem largely from actions taken by the Department of Government Efficiency (DOGE), which has pushed for significant reductions across multiple agencies.
Retail also saw a sharp rise in layoffs, with nearly 39,000 job cuts announced in February, making it the second hardest-hit sector so far this year.
Technology, traditionally a major source of layoffs, remains in the top three, with over 22,000 cuts year-to-date.
While other sectors such as consumer products and services are also trimming staff, the combination of government spending cuts and retail restructuring makes these two industries stand out for job losses in 2025.
The US workforce is not in full decline, but it is undergoing significant changes.
Massive layoffs in government, retail, and technology have created a sharp rise in job cuts, with more than 221,000 jobs lost in the first two months of 2025 alone.
This is the highest year-to-date total since 2009. However, at the same time, many industries are still hiring.
Employers announced plans to add more than 40,000 new jobs so far this year, particularly in entertainment, leisure, and automotive sectors.
While certain industries and regions are shrinking their workforces, others are expanding, leading to a redistribution rather than a straightforward decline.
Workforce participation rates are also affected by voluntary resignations, particularly after large-scale layoffs, as remaining employees feel uncertain about their job security.
Overall, the US workforce is shifting rather than steadily shrinking, with specific industries and skill levels seeing more volatility than others.
As of January 2025, the U.S. unemployment rate stood at 4.0%.
The Bureau of Labor Statistics is scheduled to release the February 2025 Employment Situation on March 7.
Economists anticipate that the unemployment rate will remain steady at 4.0% for February.
Therefore, the most recent official data indicates a 4.0% unemployment rate, with expectations of stability in the upcoming report.
