US Job Cut Announcements More Than Double, Reaching Recession-Era Levels

US employers announced 172,017 job cuts in February, a 103% surge from the same period last year and the highest February total since 2009, Challenger, Gray & Christmas reported Thursday.

February’s total marks a 245% increase from January’s 49,795 job cuts and represents the highest monthly total since July 2020 when the economy was still reeling from pandemic-related shutdowns.

“Private companies announced plans to shed thousands of jobs last month, particularly in Retail and Technology. 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,” said Andrew Challenger, Senior Vice President at Challenger, Gray & Christmas.

Source: Challenger, Gray & Christmas, Inc.

Government cuts led all sectors, with 62,242 announced job reductions across 17 federal agencies. This represents a staggering 41,311% increase from the 151 government cuts announced through February 2024. Retail followed with 38,956 cuts, while Technology companies announced 14,554 reductions.

The primary reasons cited for the job cuts include DOGE actions (63,583), bankruptcy (35,172), market conditions (28,098), and corporate restructuring (16,828). The Challenger report also identified 894 additional job cuts among nonprofits due to downstream impacts from federal funding losses.

Geographically, the East region experienced the steepest increase, with job cuts rising 109% year-over-year to 107,109. The District of Columbia saw cuts skyrocket from just 60 last year to 61,795 this year. The Midwest region also recorded significant increases, up 61% to 41,506 cuts, with Ohio seeing a 519% surge.

Despite the concerning layoff numbers, the report contained some positive indicators. Companies announced plans to hire 34,580 workers in February, the highest February total since 2022 and part of an overall 159% increase in hiring plans year-to-date. Entertainment/Leisure led with 28,000 planned hires, followed by Automotive (4,831) and Technology (3,225).

Year-to-date, employers have announced 221,812 job cuts, the highest January-February total since 2009 and 33% above the 166,945 cuts announced during the same period last year.

“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,” Challenger added.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Amazon Abandons Quebec Market, Cuts 1,700 Jobs

Amazon.com Inc (Nasdaq: AMZN) will withdraw entirely from Quebec, shutting down its warehouse network in...

Thursday, January 23, 2025, 07:39:04 AM

Trump Administration Considers Drone Strikes Against Mexican Drug Cartels

The Trump administration is exploring the possibility of using drone strikes against drug cartels in...

Wednesday, April 9, 2025, 10:07:00 AM

US, Saudi Ink $600B Megadeals With Defense, Mining, and Energy at the Core

The US and Saudi Arabia signed a sweeping set of agreements this week spanning energy,...

Saturday, May 17, 2025, 01:19:00 PM

Will The Intercept be the Next Media Outlet to Fold?

Independent news publication The Intercept may be the next media outlet to throw in the...

Tuesday, April 16, 2024, 03:02:00 PM

Volkswagen Faces Potential Job Cuts Amid Cost-Reduction Efforts

German automaker Volkswagen (ETR: VOW3) is grappling with financial challenges that may lead to significant...

Friday, September 20, 2024, 11:29:00 AM