Workplace Expert Warns ‘Nice Reprieve’ in Latest Layoff Report Won’t Last

Although layoffs were down in February, a report warns that troubled times might lie ahead for the job market.

A report from Challenger, Gray & Christmas, noted that the 48,307 job cuts in February represented a 55 percent decline from the 108,435 job cuts in January.

Also, the combined loss of 156,742 in January-February was the lowest for that time period since 2022, when 34,309 cuts were recorded in the first two months of the year.

But, the report also pointed to a troubling sign for the future with planned hirings way down. the report stated that, “So far this year, employers have announced plans to hire 18,061, down 56% from 40,669 new hires during the same period in 2025.”

February hiring plans did improve over January month-to-month, but overall, companies appear to be taking a cautious approach to hiring to start the year.

Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas, said worries over the ongoing war in Iran could also lead to more layoffs as companies prepare for an uncertain future.

“February’s dip is a nice reprieve from the elevated job cut plans to start the year. With U.S. involvement in a growing war in Iran, the end of Q1 may bring more layoff plans as companies tighten belts amid uncertainty and higher costs,” Challenger said.

The sector with the most layoffs to start the year, according to the report, was technology. Through the first two months of the year, the sector announced 33,330 layoffs, an increase of 51 percent from the same time period last year.