Job Losses: Federal Layoffs & The DOGE Effect
Federal layoffs dramatically pushed march job losses to a 36-year high.The cuts primarily hit federal workers and contractors, a direct result of the Department of Government Efficiency’s (DOGE) plans. U.S. employers announced a staggering 275,240 job cuts, with multiple sectors, including retail and auto, feeling the sting.according to recent data analyzed by News Directory 3, this surge in layoffs underscores a significant shift in the employment landscape, surpassing figures from previous years. The government has announced nearly 280,000 job cuts this year.Discover what’s next as we analyze the effects of primary_keyword and secondary_keyword on the jobs market.
Federal Job Cuts Drive March Job Losses to 36-Year High
Updated May 28, 2025
Federal government job cuts dramatically increased over the past two months, impacting 280,253 federal workers and contractors, according to Challenger, Gray & Christmas, an outplacement firm.The reduction of federal aid and contract terminations led to an additional 4,429 job losses, primarily affecting non-profits and health organizations.
U.S. employers announced 275,240 job cuts in March, a 60% jump from February. this surge in federal layoffs represents the third-highest monthly total since tracking began in 1989. The rise in federal government job cuts significantly impacted the overall employment landscape.
Andrew Challenger, senior vice president at Challenger, Gray & Christmas, said job cut announcements were mainly due to the Department of Government Efficiency’s (DOGE) plans to eliminate federal government positions. Without these federal government job cuts, it would have been a relatively quiet month for layoffs, Challenger said.
In the first quarter of 2025, U.S. employers announced 497,052 job cuts, the highest quarterly total as the first quarter of 2009. This figure represents a 93% increase from the same period in 2024 and more than triples the number of job cuts reported in the fourth quarter of 2024.
The U.S. government has announced 279,445 job cuts so far this year, a 672% increase from the 36,195 cuts in the first quarter of 2024. the technology sector reported 15,055 job cuts in March, a 3% rise from February. Though, its year-to-date total of 37,097 is 14% lower than the same period last year.
several sectors will be impacted by tariffs going forward, including Consumer, Auto, and Retail. these sectors are already cutting more workers than last year, said Challenger.
Job cuts in the first quarter of 2025 surged across retail, consumer products, and automotive sectors compared to the previous year. Retailers announced 57,804 cuts, a 37% increase, including 11,709 in March alone. Consumer products manufacturers reported 14,619 cuts, up 54%, while automakers recorded 7,146 cuts, a 28% rise. Financial firms saw a 44% decrease, with 15,982 cuts year-to-date.
What’s next
The impact of these federal government job cuts and broader economic trends will likely continue to shape the employment landscape in the coming months, with close attention paid to sectors affected by tariffs and evolving government policies.