Maryland is facing deep and widespread layoffs in 2025.
Federal job cuts are hitting the state hardest. In March and April alone, 5,300 federal jobs were eliminated. These include direct government roles and contractor positions. Maryland has the second-highest concentration of federal workers in the U.S. That makes the state especially vulnerable to shifts in Washington.
Contractors are also laying off in large numbers. Over 3,000 workers at federal contracting firms have received layoff notices. Major employers impacted include DAI Global, which cut over 500 jobs, and Jhpiego and Johns Hopkins Bloomberg School, which laid off 237 combined. These layoffs are tied to over $800 million in canceled USAID grants.
Other firms affected include Abt Global, Creative Associates, EnCompass, SSAI, and Peraton. Most layoffs are concentrated in Montgomery and Prince George's counties.
These cuts are driving economic losses beyond jobs. The state expects $262 million less in income tax collections for 2025. Wages statewide may fall by over $3 billion. Estimates suggest more than 30,000 total jobs could be lost due to the ripple effect.
Some federal layoffs have been halted—temporarily. A Maryland federal judge issued a partial injunction to pause terminations of probationary workers. But uncertainty remains high. More cuts are likely at agencies like the IRS, NOAA, and the VA.
Private companies are also cutting staff. Fila USA laid off 112 people in Curtis Bay and 18 in Towson. Diamond Comic Distributors closed its Hunt Valley plant, cutting 168 workers. Safeway shut down a store in Rockville, affecting 85 people. FedEx and Lineage also announced closures in different cities.
Still, some parts of Maryland’s private sector are growing. In March and April, the state added 2,300 private sector jobs. Growth is strongest in construction, transportation, arts, health care, and food services.
Not all areas are doing well. Retail, manufacturing, and wholesale trade lost jobs. The professional services sector, including some contractors, also declined.
Maryland’s unemployment rate remains low—just 3.1% in April. But the economic outlook is dimming. The state’s Board of Revenue Estimates has twice lowered its projections for 2025 and 2026. That’s due to falling tax revenues from lost federal jobs.
To close a $3.3 billion budget gap, the state passed new taxes and spending cuts. Maryland added a 3% tax on tech services and raised the vehicle excise tax. Some warn these changes could push tech firms out of the state.
The Port of Baltimore is under threat too. A 25% federal tariff on imported vehicles could cut cargo traffic. That would hurt port operations and local jobs tied to shipping.
Governor Wes Moore’s administration is responding. The state launched a public resource hub for laid-off workers. There’s help with unemployment benefits, job training, and reemployment. Maryland is also offering paths into teaching to address educator shortages.
In summary, Maryland’s economy is in a fragile state. Federal cuts are shaking the foundation. Private growth exists but isn’t strong enough to offset the damage. State leaders are taking action—but the challenges are significant and growing.