DOGE firings unleash worst February for layoff announcements since the Great Recession

Efforts to hollow out the federal workforce by Elon Musk and his Department of Government Efficiency (DOGE) have resulted in a dramatic rise in layoff announcements.

The latest monthly data from Challenger, Gray & Christmas shows that employers in the United States announced more than 172,000 layoffs during February, which was an increase of 245% from January and the highest monthly total since mid-2020, during the pandemic.

Further, it was the highest number of layoffs for the month of February since 2009, in the middle of the financial crisis and subsequent Great Recession, when more than 186,000 layoffs were announced. 

So far, through the first two months of the year, employers have cut a total of 222,000 jobs, an increase of 33% over last year.

Which industries have been hardest hit?

DOGE’s slashing of the federal government’s headcount meant a huge increase in government layoffs. In fact, through February, the report notes that 62,530 government jobs have been eliminated, which was an increase of 41,311% year-over-year.

Meanwhile, the retail and technology sectors continue to see significant cuts. Further, almost 39,000 jobs were lost in the retail sector, 14,554 in technology, and 13,804 in the services and consumer products sector during February.

“Private companies announced plans to shed thousands of jobs last month, particularly in Retail and Technology," said Andrew Challenger, senior vice president and workplace expert for Challenger, Gray & Christmas, in a statement included with the report. "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."

Interestingly, the report also notes that hiring plans are on an uptick for many employers, too.

“So far this year, companies plan to hire 40,669 workers, an increase of 159% from the 15,693 hiring plans announced during the same period last year,” the report reads. “This is the highest number for February since 2022, when companies announced 215,127 new hires.”

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