Layoffs Spiked 245% In February: See NJ Impact

NEW JERSEY — Layoffs soared in New Jersey and 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.

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."

New Jersey saw a more drastic increase from 1,088 layoffs announced at the end of Feb. 2024 to 16,918 at the end of Feb. 2025: A 1,455 percent jump, Challenger said.

In February, more than 1,800 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. This includes nearly 500 workers at Walmart's corporate offices in Hoboken, and upwards of 300 announced at Bristol Myers Squibb in Lawrenceville.

It remains to be seen how many of the remaining 15,000+ layoffs in February are tied to cuts at the federal level, which can affect employees both directly and indirectly.

New Jersey's workforce includes approximately 50,000 federal employees, according to the state Department of Labor. The federal Bureau of Labor Statistics and NJDOL could not provide exact numbers for how many government workers in the state have been affected by these job cuts. However, the state said hundreds of federal employees have applied for unemployment benefits since the cuts began.

Federal workers whose duty stations were located in New Jersey, or who are New Jersey residents whose official duty stations were outside the United States, may be able to file for benefits.

"Our department stands ready to help valued civil service employees who call New Jersey home receive the unemployment benefits they have earned and career support services they need to find the meaningful work they deserve," said Labor Commissioner Robert Asaro-Angelo.

More than 110 unionized employees were cut at Internal Revenue Service offices around the state last month as the agency prepares for tax filing season, Patch confirmed. Several New Jersey nonprofits also said their programs will be impacted by the cuts.

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