US job cuts spike to 275,000 in March as federal restructuring drives layoffs: Report

​​​​​​​By Yasin Gungor

ISTANBUL (AA) - US employers announced 275,240 job cuts in March, a 60% increase from February and more than double the figure of last March, as efforts to overhaul the federal workforce continues, according to data Thursday by US-based global outplacement firm Challenger, Gray & Christmas.

The first quarter of 2025 has seen 497,052 cuts announced nationwide, the highest quarterly total since the first quarter of 2009 during the Great Recession.

The monthly total represents the third-highest number of job cuts ever recorded and the highest March figure since tracking began in 1989.

- Role of DOGE

Department of Government Efficiency's (DOGE) layoffs accounted for nearly 80% of reductions, according to the report.

DOGE's restructuring accounting for 216,215 positions eliminated in March. "Job cut announcements were dominated last month by DOGE plans to eliminate positions in the federal government," said Andrew Challenger, the firm's senior vice president. "It would have otherwise been a fairly quiet month for layoffs.”

The federal workforce reduction has eliminated 280,253 positions in the last two months, with an additional 4,429 layoffs attributed to cuts in federal contracts -- primarily affecting non-profit and health care organizations.​​​​​​​

- Cuts spread among sectors

While government reductions led the cuts, several private sectors showed concerning trends.

Technology companies announced 15,055 layoffs in March, while retailers cut 11,709 positions. Consumer products and automotive manufacturers have eliminated 14,619 jobs this year, a 54% increase from 2024.

The wave of layoffs has not reached coronavirus pandemic-level cuts, which peaked at 671,129 in April 2020, according to the report.

"Several sectors will be impacted by tariffs going forward, including Consumer, Auto, and Retail," Challenger warned.