Layoffs Spiked 245% In February: See IL Impact

ACROSS ILLINOIS —Layoffs soared across the United States last month amid a mass of federal government job cuts and canceled contracts, along with staff reductions at retailers and other businesses. But it was a different story in Illinois, where job cuts decreased by 22 percent.

Nationwide, job cuts jumped 245 percent last month, according to executive outplacement firm Challenger, Gray & Christmas. There were 172,017 layoffs announced in February across all sectors, and Challenger said that 62,242 of these were at federal agencies impacted by the Department of Government Efficiency's efforts to slash spending.

That is the highest monthly total for layoffs since July 2020, when 262,649 cuts were announced, according to a Challenger Report published on Thursday.

“Private companies announced plans to shed thousands of jobs last month, particularly in retail and technology," said Andrew Challenger, Senior Vice President and workplace expert for the firm. "With the impact of the DOGE actions, as well as canceled government contracts, fear of trade wars, and bankruptcies, job cuts soared in February."

In Illinois, where layoffs have dropped, there were 4,372 layoffs announced at the end of February 2024 compared to 3,392 layoffs announced at the end of February 2025. That is a 22.42 percent decrease, according to the Challenger report.

In February, 3,800 position cuts were posted on the state Department of Labor's website under the Worker Adjustment and Retraining Notification Act, which is intended to give employees notice of mass layoffs.

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It remains to be seen how many of the layoffs in Illinois are tied to cuts at the federal level, which can affect employees both directly and indirectly. Illinois' workforce includes approximately 81,300 federal employees, Illinois Gov. J.B. Pritzker said in a February news release.

Here's a select breakdown of announced job cuts by industry, according to the Challenger report.

Government

• Feb. '24: 27
• Jan. '25: 288
• Feb. '25: 62,242

Technology

• Feb. '24: 12,412
• Jan. '25: 7,488
• Feb. '25: 14,554

Electronics

• Feb. '24: 202
• Jan. '25: 107
• Feb. '25: 4,588

Financial

• Feb. '24: 3,618
• Jan. '25: 4,529
• Feb. '25: 6,894

Pharmaceutical

• Feb. '24: 1,838
• Jan. '25: 329
• Feb. '25: 256

Retail

• Feb. '24: 1,387
• Jan. '25: 6,419
• Feb. '25: 38,956