U.S. employers announced 275,240 job cuts in March 2025, marking the highest monthly total since May 2020 and a sharp rise from the 172,017 layoffs reported in February. The March figure represents the third-highest monthly total ever recorded, underscoring significant turbulence in the labor market.
US job cuts hit fresh 2020-highs on DOGE layoffs
"Job cut announcements were dominated last month by DOGE’s (Department of Government Efficiency) plans to eliminate positions in the federal government. It would have otherwise been a fairly quiet month for layoffs," said Andrew Challenger, Senior Vice President at Challenger, Gray & Christmas. The government sector led all industries in job cuts, with 216,215 layoffs, all occurring at the federal level.
Over the past two months, DOGE’s workforce reduction initiatives have contributed to 280,253 planned job cuts across 27 federal agencies, making it one of the largest government downsizing efforts in decades. In addition, the impact has rippled beyond the public sector, with an estimated 4,429 job losses linked to the reduction of federal aid or the termination of government contracts, primarily affecting nonprofit organizations and healthcare providers.
Year-to-date data
So far in 2025, U.S. employers have announced 497,052 layoffs, making it the highest year-to-date total for any first quarter since 2009. The surge in job cuts has raised concerns about broader economic implications, particularly as businesses assess the impact of recent tariffs, interest rate policies, and fiscal tightening.
Looking ahead, analysts will closely monitor whether job losses spill over into the private sector or remain concentrated within government-related employment. The upcoming U.S. nonfarm payrolls report will provide additional insight into hiring trends and whether job growth remains resilient in the face of ongoing economic uncertainties.
