The unstaffed information stand on the ground floor is shown Wednesday, April 30, 2025 at the Milwaukee County Courthouse in Milwaukee, Wisconsin. The Milwaukee Justice Center's courthouse navigator and information desk program funding cut effective immediately, after sweeping cuts to the AmeriCorps program ordered by billionaire Elon Musk's U.S. Department of Government Efficiency this month.
Washington D.C. – A new report from outplacement firm Challenger, Gray and Christmas reveals that nearly half of all layoffs in the first four months of 2025 have been driven by cuts tied to the Department of Government Efficiency’s (DOGE) cost-cutting measures. The ongoing reduction of the federal workforce, part of a broader initiative spearheaded by tech billionaire Elon Musk, has already led to 283,172 job cuts, accounting for 48% of the total layoffs reported so far this year.
According to the report, DOGE Actions were the primary driver of these cuts, with March alone accounting for a staggering 216,670 job losses. This marks a significant chunk of the 275,240 total layoffs recorded across all sectors in that month, making government cuts the largest single contributor to job losses during the period.
Though job cuts from DOGE slowed in April to just 2,919 positions, the total number of layoffs remained alarmingly high, with 105,441 announced in the month—making it the highest level seen since April 2020, during the peak of the COVID-19 pandemic. Despite the drop in government-driven layoffs, the overall number of job losses is indicative of broader economic challenges.
Andrew Challenger, senior vice president at Challenger, Gray and Christmas, attributed many of the April cuts to “Market/Economic Conditions,” including the impact of tariffs and corporate restructuring. “Though the Government cuts are front and center, we saw job cuts across sectors last month. Generally, companies are citing the economy and new technology,” Challenger said.
The impact of tariffs imposed by President Trump in March has been felt across the economy, as businesses adjust to rising import costs and supply chain disruptions. The first quarter of 2025 saw the U.S. Gross Domestic Product shrink, partly due to a surge in imports ahead of the tariffs. As the economy braces for more uncertainty, employers are tightening their hiring practices, leading to fewer opportunities for workers across the country.
Job losses due to DOGE’s cost-cutting measures have been most prominent in government positions but have also extended to non-profit and education sectors, where another 6,945 job cuts have been attributed to the “DOGE Downstream Impact.” These cuts are expected to continue to ripple across various industries, as federal budget constraints and organizational restructuring continue to make waves throughout the workforce.
While the April reduction in DOGE-related job cuts may seem like a sign of stabilization, the broader trend indicates that 2025 could be a year of significant economic strain and job insecurity for millions of Americans. As the country faces rising inflation, supply chain issues, and political turbulence, workers and businesses alike are left navigating a tumultuous employment landscape.
