US-based employers announced 172,017 job cuts in February, the highest for the month since 2009, led by federal job cuts, according to consultancy Challenger, Grey & Christmas.
The total for February is a 245pc increase from 49,795 cuts announced in January and is up by 103pc from a year prior.
The government led all sectors in planned job cuts, with 62,242 cuts announced from 17 different agencies as part of the Department of Government Efficiency (DOGE)'s mass layoffs and contract cancellations.
Employers in the first two months of 2025 announced 221,812 job cuts, the highest for the two-month period since 2009, when 428,099 job cuts were announced. The year-to-date total is up by 33pc from a year ago.
"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," said Andrew Challenger, senior vice president for Challenger, Gray & Christmas.
An order to fire about 200,000 probationary federal employees was blocked by a federal judge, Challenger said.
"When mass layoffs occur, it often leaves remaining staff feeling uneasy and uncertain," Challenger said. "The likelihood that many more workers leave voluntarily is high."
The Challenger report comes a day before the monthly employment report from the Labor Department. Analysts surveyed by Trading Economics forecast 160,000 nonfarm jobs were added last month, up from 143,000 in January. The jobs report is based on a survey that includes the pay period encompassing the 12th of the month, while most of the job cuts captured by Challenger were in the latter part of the month.
By Bob Willis
