Layoffs in the US increased by 245 percent
Layoffs announced by US-based employers rose by 245 percent in February compared to the previous month, reaching 172,017, driven by federal government job cuts, canceled contracts, trade war fears, and bankruptcies.
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Consulting firm Challenger, Gray & Christmas, which tracks announced or confirmed layoffs, has released its report for February.
According to the report, US-based employers announced that 172,017 people were laid off in February.
This marks the highest level recorded for the month of February since the 186,350 layoffs in 2009. It also stands as the highest monthly total since the 262,649 layoffs announced in July 2020.
While layoffs increased by 245 percent in February compared to the previous month, they rose by 103 percent compared to the same period last year.
In the first two months of this year, layoffs reached 221,812, an increase of 33 percent compared to the same period in 2024.
The highest number of layoffs in February occurred in the public sector. Last month, a total of 62,242 layoffs were announced across 17 different federal government agencies.
Andrew Challenger, Senior Vice President at Challenger, Gray & Christmas, stated that private companies announced plans to lay off thousands of employees last month, particularly in the retail and technology sectors.
Challenger reported that layoffs in February increased due to the actions of the Department of Government Efficiency (DOGE), as well as the impact of canceled government contracts, fears of a trade war, and bankruptcies.
Noting that employees often feel restless and uncertain during mass layoffs, Challenger stated that in such situations, the likelihood of many employees choosing to leave voluntarily is also quite high.