5 days Ago By Moneywise
In March of 2025, there was a near-record number of layoffs in the United States. In total, 275,240 workers were laid off during the month, according to outplacement firm Challenger, Gray & Christmas . This is a 205% increase in the number of layoffs compared with March of 2024, and a 60% increase from the 172,017 cuts announced one month prior.
It was the third-highest number of layoffs ever to occur in a single month in the U.S., surpassed only during the pandemic, with 671,129 job cuts in April 2020, followed by May 2020, when another 397,016 people were let go.
Don't miss These layoffs didn't happen equally across all industries, though. They were largely isolated to government employees. A total of 216,215 federal workers were dismissed in March.
This brings the total number of laid off federal workers to 280,253 across the past two months. These layoffs are happening because of the Department of Government Efficiency (DOGE), and they are likely to continue in the coming months. They'll affect not just those let go, but also the economy as a whole.
Here's what you need to know about why they're happening, the widespread impact they could have and what you can do if you were one of the thousands laid off Why is DOGE laying off so many workers, and will this continue? DOGE was created by executive order by President Donald Trump on Jan. 20, 2025. President Trump has made it clear that Elon Musk was put in charge of DOGE to wage "war on government waste, fraud, and abuse.
" DOGE has begun aggressive audits of virtually every department in the U.S. government, and has already laid off or made plans to lay off thousands.
According to Newsweek , in March alone this included: "I'm just here trying to make government more efficient, eliminate waste and fraud, and so far we're making good progress, actually," Elon Musk told Fox Business mid-March. "Our savings at this point exceed $4 billion a day, so it's very significant." Musk also said he believes DOGE will likely meet its goal of cutting $1 trillion from government spending, unless the department is stopped.
Read more: The US stock market’s ‘fear gauge’ has exploded — but this 1 ‘shockproof’ asset is up 14% and helping American retirees stay calm . Here’s how to own it ASAP How will DOGE's firings affect local economies and communities? Massive cuts to the federal government have obviously left many federal workers and their families struggling, and this is likely to have consequences for the broader economy. The Center on Budget and Policy Priorities has indicated that when unemployed federal workers reduce spending, local businesses near military bases, national parks and federal field offices suffer.
Private companies that contract with the government are also being affected and may need to lay off staff. And nonprofit groups that have lost access to funds from the U.S.
Agency for International Development (USAID) are also being impacted, as are farmers who previously sold $2 billion in U.S.-grown crops to USAID for provide humanitarian relief efforts.
All of these layoffs, and the resulting ripple effects, could potentially push the country further toward recession — which is already a looming threat because of the uncertainty surrounding tariffs. What to do if you're laid off Whether you are a federal worker experiencing layoffs or you lose your job because of the ripple effects, there are steps you can and should take to shore up your finances and help protect your future. One of the first things to do is make sure you understand your rights.
The government has already ordered the Trump administration to rescind the firing of some federal workers. Be sure to check with your union rep, if you have one, or consider consulting with an employment law attorney if you feel you were treated unfairly. DOGE was offering severance payments to some federal workers.
So, you can explore whether you are eligible for this separation pay — as well as make sure you know whether you are owed any money for unpaid vacation or sick time. You'll also need to explore options to get health insurance ASAP if you had coverage through your government job, as COBRA (which allows you to stay on your workplace plan for up to 18 months) doesn't apply to federal employees. You'll also want to apply for unemployment benefits right away, as most federal workers will be eligible.
Lastly, you should start making cuts to your budget to spend the bare minimum until you can find new work. By taking these steps, as well as reaching out to your professional network and polishing up your résumé, you can help get yourself back on track. Your new job may need to be in the private sector, at least for the next few years.
But with careful financial planning and a dedicated job search, you can help avoid long-term damage to your finances caused by the DOGE cuts. What to read next This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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