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DOGE drove layoff announcements to their third-highest-ever level in March

DOGE drove layoff announcements to their third-highest-ever level in March
April 03, 2025

(CNN) โ€” More than 275,000 layoffs were announced last month, reaching a level not seen since the pandemic, according to a new report published Thursday.

The biggest culprit was one particular employer: The federal government.

The federal government announced plans to axe 216,215 jobs, accounting for nearly 80% of the 275,240 layoffs announcements made by US employers in March, according to Challenger Gray & Christmasโ€™ latest report. Itโ€™s the third-highest monthly total behind April 2020 (671,129) and May 2020 (397,016).

The Department of Government Efficiency has run roughshod on the federal government, slashing funding, scrapping contracts and laying off droves of federal workers.

โ€œJob cut announcements were dominated last month by [DOGE] plans to eliminate positions in the federal government,โ€ Andrew Challenger, senior vice president for the global outplacement and coaching firm. โ€œIt would have otherwise been a fairly quiet month for layoffs.โ€

Of the remaining 59,025 cuts announced outside of the federal government, the biggest share was in technology and retail, according to the report.

The March announcements mark a stark 60% jump from February, which saw a spike of its own, and theyโ€™re up 205% from the 90,309 cuts announced in March 2024.

The DOGE-driven job cuts arenโ€™t expected to hit the labor market data and the economy in one fell swoop. While some federal employees have been laid off immediately, others are serving out a paid notice period where they essentially quit but wonโ€™t be unemployed weeks or even months from now.

Itโ€™s also important to note that Challengerโ€™s report tallies layoff intentions, meaning that the actual job losses could occur in weeks or months (if they happen at all).

Still, DOGEโ€™s drastic cutbacks are expected to heavily reverberate throughout local communities and the economy as a whole.

In February and March, there were 280,253 layoffs outlined for federal workers and contractors at 27 agencies, according to the report. Another 4,429 job cuts (mostly affecting health care businesses and nonprofit organizations) have occurred because of downstream effects from cutting federal aid or ending contracts, according to the report.

โ€œCutting (government spending) indiscriminately has no positive effect on any economy,โ€ Gregory Daco, chief economist at EY-Parthenon, told CNN in an interview. โ€œDoing so indiscriminately and rapidly risks having more significant spillovers to the private sector.โ€

โ€œMoving fast and breaking things is a risky proposition,โ€ he said.

Through February, the US labor market still appeared fairly solid but with cooler job growth and a slowdown in labor turnover, the โ€œchurnโ€ thatโ€™s needed for a healthy labor market.

Americans are staying unemployed for longer: The number of continuing claims for unemployment insurance, which are filed by Americans who have received at least a week or more of jobless benefits, are at their highest level since November 2021, according to Labor Department data released Thursday.

Continuing claims climbed by 56,000 to 1.9 million for the week ended March 22, according to the Department of Labor report.

Still, Thursdayโ€™s weekly report also showed that layoff activity does not appear to be mounting. First-time claims for unemployment benefits fell to 219,000 last week from 225,000 the week before. Economists were expecting those to rise.

That overall number does not include federal workers (theyโ€™re tracked and recorded separately and reported with a weekโ€™s lag), though those claims decreased as well. During the week ended March 22, there were 564 federal workers who filed for unemployment benefits. Thatโ€™s down from 821 the week before but well above the 371 who filed during the comparable year-ago week.

The US job market has remained strong and steady for years now, providing a foundation for the all-important consumer to stay afloat amid high inflation and high interest rates.

The March jobs report, scheduled for release by the Bureau of Labor Statistics on Friday morning, could provide one of the clearest pictures yet as to how the Trump administrationโ€™s sweeping policy moves on trade, immigration and its overhaul of the federal government is rippling through the broader labor market.

This story has been updated with additional developments and context.

The-CNN-Wire
โ„ข & ยฉ 2025 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

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