March saw one of the highest numbers of job cuts ever recorded.

According to a recent report from Challenger, Gray & Christmas, Inc., a staggering 275,240 jobs were slashed last month, making it the third-highest monthly total on record and the most severe since the pandemic.

What is behind this spike?

Much of it is driven by the U.S. government. Over 280,000 layoffs are planned across 27 federal agencies, most of which are non-profit and global health organisations. These cuts are playing a role in the transformation of the global aid landscape, as critical funding is increasingly scaled back or withdrawn.

The human costs are harrowing, threatening vital humanitarian aid and global health initiatives.

Faced with uncertainty and loss, many affected organisations are prompted to rethink their commitments and ways of working.

What consequences may this have for the impacted organisations and the people that run them?

What we know from the research is that the benefits of reactive downsizing, cutting jobs in response to immediate pressures, seldom outweigh the costs. Mass layoffs are associated with a host of negative outcomes, including the erosion of performance and productivity. The impact is not limited to those let go, being deeply felt among those who remain.

At ODRL, we are launching a series of posts to unravel the topic of downsizing in organisations. We will draw on both research and real-world implications to explore how organisations can navigate this terrain more thoughtfully.

If you would like to share your story, please reach out to us here or at: enquiries@odrl.org.

Stay tuned.

References

Challenger, Gray & Christmas, Inc.. (2025, April 3). Federal cuts dominate March 2025 total: 275,240 announced job cuts, 216,670 from DOGE actions. https://www.challengergray.com/blog/federal-cuts-dominate-march-2025-total-275240-announced-job-cuts-216670-from-doge-actions/

Gandolfi, F., & Hansson, M. (2011). Causes and consequences of downsizing: Towards an integrative framework. Journal of Management & Organization, 17(4), 498–521. https://doi.org/10.5172/jmo.2011.17.4.498

Molloy Consultants. (n.d.). Global Impact. https://www.usaidstopwork.com/globalimpact