Nearly half of all layoffs in 2025 so far are linked to cost-cutting measures initiated by the Department of Government Efficiency (DOGE), according to new data from the outplacement firm Challenger, Gray & Christmas. The report points to DOGE’s aggressive push to shrink government spending and the size of the federal workforce as a primary factor driving widespread job losses across the country.
Between January and April, DOGE-led actions resulted in 283,172 job eliminations. An additional 6,945 cuts were attributed to what the report calls the “DOGE Downstream Impact,” referring to the ripple effects felt in sectors like nonprofit organizations and educational institutions. Combined, these figures represent 48 percent of all job reductions announced nationwide this year.
The bulk of those losses came in March, when DOGE-related job cuts skyrocketed to 216,670, making up the overwhelming majority of the 275,240 layoffs reported across all industries that month. April saw a dramatic drop in DOGE-linked cuts — just 2,919 — suggesting a temporary slowdown in the initiative spearheaded by tech mogul Elon Musk, who has led the charge to overhaul the federal government through rapid automation, department consolidation, and hiring freezes.
Still, job losses in April remained historically high, totaling 105,441 — the worst monthly figure since April 2020 at the height of the pandemic, and among the highest recorded by Challenger since it began tracking layoffs in 1989.
The reasons behind the April cuts were more diverse, with companies citing “Market/Economic Conditions,” ongoing tariff tensions, and internal restructuring as the driving forces. While DOGE’s pace of layoffs has momentarily cooled, the broader climate of economic uncertainty, trade instability, and workforce disruption continues to rattle industries nationwide.
The growing toll has raised concerns among both labor advocates and political leaders, who argue that the rush to streamline government is inflicting unintended harm on communities and families that rely on federal programs and the jobs they support. The data suggests that even sectors not directly tied to government agencies are beginning to feel the squeeze.