US Layoffs Plummet in February, Signals Remain Fragile
US companies announced 48,307 layoffs in February, down 55% from 108,435 in January, according to data from Challenger, Gray & Christmas released Thursday (March 5). Compared to February of last year, the number of layoffs also fell 72% to 172,017.
Cumulatively, companies have announced 156,742 layoffs through the first two months of this year. This January-February figure is the lowest since 2022, although it is still one of the relatively high initial year totals in the post-2009 global financial crisis context.
Challenger believes this decline is not necessarily sustainable. Andy Challenger, Chief Revenue Officer at Challenger, Gray & Christmas, warned that rising economic and geopolitical uncertainty—particularly related to the escalating conflict involving Iran—could prompt companies to tighten spending and announce more layoffs toward the end of the first quarter.
The reasons for layoffs were most often attributed to store/unit closures, market and economic conditions, and corporate restructuring. Artificial Intelligence adoption was also cited in the approximately 4,680 layoffs announced in February.
Recruitment plans, however, remained weak. Throughout the year, companies announced plans to hire only 18,061 workers—a 56% decrease compared to the same period in 2025—demonstrating a still-defensive corporate stance amidst an unstable economic outlook.
Source: Newsmaker.id
