Some 80% of the job cuts in March are DOGE-related.
March saw 275,240 jobs cuts in the U.S., the third most monthly total of all-time, according to the Challenger Report, a monthly jobs report produced by Challenger, Gray & Christmas.
The 275,240 job cuts in March are up 60% from the previous month and 205% from the same month a year ago. To put that in perspective, the 90,309 job cuts in March 2024 was the highest monthly total last year, and this March is 205% higher than that.
It is the most layoffs in March since Challenger started tracking this data in 1989. It is also the third highest monthly total since 1989. The only two months over the past 36 years that saw more job reductions were during the pandemic. Specifically, the most occurred in April 2020 when 671,129 jobs were slashed, followed by May 2020 when 397,016 jobs were axed.
In the first quarter, employers have announced 497,052, the highest year-to-date and quarterly total since the first quarter of 2009, when 578,510 job cuts were announced. That is up 93% from the first quarter of 2024 and 227% more than Q4 of 2024.
DOGE Accounts for 80% of Cuts
The bulk of the workforce reduction came from the government related to the Department of Government Efficiency (DOGE) reviews. DOGE-related cuts accounted for 216,215 of the total, or approximately 80%. It is some 299% more than the previous high for government jobs cuts, which occurred in September 2011 when there were 54,182.
In the first quarter, the government slashed 279,445 jobs – an increase of 672% year-over-year. Pretty much all of those cuts have occurred in the past two months since President Donald Trump took office and DOGE launched.
According to the report, DOGE actions account for 280,253 layoff plans of federal workers and contractors impacting 27 agencies. Another 4,429 job cuts are related, stemming from cuts to federal aid or ending contracts.
“Job cut announcements were dominated last month by Department of Government Efficiency [DOGE] plans to eliminate positions in the federal government. It would have otherwise been a fairly quiet month for layoffs,” Andrew Challenger, senior vice president and workplace expert for Challenger, Gray & Christmas, said.
Retail, Consumer, and Auto Industries Take a Hit
While the numbers pale in comparison to the government cuts, the retail sector took a hit with 11,709 cuts in March and 57,804 in the first quarter. The Q1 results are up 370% from the first quarter of 2024.
Consumer products manufacturers and the auto industry have also seen more job losses. Consumer products manufacturers have announced 14,619 job cuts so far in 2025, up 54% year-over-year. Automakers have announced 7,146 job cuts so far this year, a 28% rise compared to last year. Challenger says job losses in these sectors should continue.
“Several sectors will be impacted by tariffs going forward, including Consumer, Auto, and Retail. These sectors are already cutting more workers than last year,” Challenger said.
The technology sector saw job losses tick up 3% in March from February with 15,055 cuts. But so far this year, tech job losses are down 14% compared to the same period last year.
Among other sectors, financial companies have eliminated 15,982 jobs this year, down 44% year-over-year while the media industry has announced only 1,820 cuts, down 74% from Q1 of 2024.
Outside of DOGE’s impact, 47,851 cited market/economic conditions as the reason for the layoffs, while 45,761 job cuts were attributed to store, unit, or department closings. Further, restructuring accounted for 39,396 job losses while bankruptcy was the reason for 35,501 job cuts. Further, 63 layoffs were directly attributed to tariffs – all in the retail sector.
Hiring Plans Drop Sharply
March also brought bad news on the hiring front. While employers were more optimistic about hiring in February, that optimism took a sharp turn south in March.
Companies’ hiring plans fell from 34,580 in February to 13,198 in March. Through the first three months of the year, companies plan to hire 53,867 workers, down 16% from the first quarter of 2024. The Q1 hiring total is the lowest since 2012 when 52,540 new hiring plans were announced.
The report did find that 3,972 federal layoffs were rescinded and that those jobs were included in the analysis.
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