laid off state department employees

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Nick Mordowanec

By Nick Mordowanec

Staff Writer

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Hundreds of employees working in various industries across the United States are expected to be laid off in September, although the number has decreased compared to past months.

Why It Matters

Layoffs occur for multiple reasons. Some directly correlate to current and future projections in alignment with the nation's economic climate, while others are company-specific and conducted to maximize profits at the behest of the workforce. Layoffs may also be levied to better fulfill demand.

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The U.S. economy is responding to governmental actions, including widespread tariffs on countries worldwide, as well as reactions from various industries, such as manufacturing, agriculture, energy, retail, and technology.

In July of this year, there were 62,075 job cuts announced, according to a report by outplacement firm Challenger, Gray & Christmas. That's a 29 percent jump from June and 140 percent higher than the 25,885 announced in July 2024.

Tractor maker John Deere just announced layoffs affecting 238 workers across three Midwest factories, alluding to tariffs and a shaky agricultural outlook.

laid off state department employees

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What To Know

The layoffs expected this month reflect the ebbs and flows of the U.S. economy and the lack of future clarity within the business sector. The layoff outlook shows a drastic decrease from the roughly 114 employers that laid off workers in August and the 95 employers that laid off workers in July. Some argue that businesses have adapted to tariffs that they expect will remain long-term.

Employee layoffs vary by company, location and month.

Based on the most recent Worker Adjustment and Retraining Notification Act (WARN) notices via WARNTracker.com, the following companies are laying off employees in September:

This month's list is much smaller than those in previous months. Aside from the 11-50 layoffs at Jack in the Box in Washington State, the other companies listed will lay off between 51 and 100 workers or between 101 and 250 workers.

"With a lot of tariff uncertainty, we saw a decline in consumer and business sentiment throughout the spring as small businesses were grappling with what tariffs would likely mean to them," Ben Johnston, COO of small business lender Kapitus, told Newsweek. "We saw some application decline as well during that time."

"But we did start to see some optimism return in the June-July timeframe. We've definitely seen application volume go up, and we've seen pretty consistent performance throughout that entire time," Johnston said.

"I do believe that the tariff situation is becoming more clear to small businesses, and small businesses have adapted and are thinking through exactly what these tariffs will ultimately mean to them. And we are seeing some extension of confidence as a result of that."

However, Johnston noted how some areas of the economy are "starting to look a little bit soft," citing a mediocre jobs report from the federal government. In turn, it's causing business owners—at least those of the smaller variety—to take "a very cautious but slightly optimistic view of the economy today."

The tariffs have become somewhat ingrained in how these businesses operate, encompassing current and future projections of revenue and expenditures, as well as the impact on the supply chain. That includes many of them passing on higher prices directly to consumers, Johnston said.

"I think at this point, businesses are making the determination that tariffs are here to stay," he said. "Some of the exact numbers are likely to move, but I think it's reasonable to assume that most of our trading partners will have at least a 10-15 percent tariff rate on the imported goods, and for many of our trading partners in Asia, those numbers will probably be a bit higher—probably more in the 25 percent and up range.

"I think small businesses are realizing that it's unlikely that we're going to see a sea change, that a number of official long-term deals have now been struck. And unless something really drastic changes in the economy, I think that small businesses are now planning for the next several years to be at or around the rates that are published."

What People Are Saying

Andrew Challenger, senior vice president and labor expert at Challenger, Gray & Christmas: "We are seeing the federal budget cuts implemented by DOGE impact nonprofits and health care in addition to the government. AI was cited for over 10,000 cuts last month, and tariff concerns have impacted nearly 6,000 jobs this year."

U.S. Treasury Secretary Scott Bessent on Fox Business on August 27, after 50 percent tariffs on imported goods from India into the U.S. went into effect: "There's many levels going on here. I do think India's the world's largest democracy; the U.S. is the world's largest economy. I think at the end of the day, we will come together. I think a lot of it by the Indians has been performative.

"I've said it all along during the tariff negotiations. The U.S. is the deficit country. When there is a schism in trade relations, the deficit country [is] at an advantage. It's the surplus country that should worry. So, the Indians are selling to us. They have very high tariffs, and we have a very large deficit with them."

What Happens Next

Applications for unemployment benefits, which are routinely viewed as a barometer of layoffs across the country, decreased by approximately 5,000 to 229,000 for the week ending August 23, the Labor Department reported on August 28.

Simultaneously, hiring has slowed as economists report that employers are retaining most of the workers they already have.

Correction 9/2/25, 5:13 p.m. ET: This article was updated to reflect that Indeed, Inc. was not laying off any employees in September.

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