U.S. employers announced 108,435 job cuts in January 2026, marking a dramatic escalation in layoffs and the highest number for the month since 2009, according to a report from global outplacement and executive coaching firm Challenger, Gray & Christmas.
The figure represents a 205% increase from the 35,553 layoffs announced in December 2025, and a 118% rise compared to the 49,795 cuts reported in January 2025.
Layoffs Surge Across America
This sharp monthly jump reverses a recent downward trend in layoff announcements and signals growing caution among businesses heading into the new year.
January’s total is the highest for the month since 2009, when 241,749 job cuts were announced amid the aftermath of the Great Recession. It also stands as the largest monthly layoff figure since October 2025, when 153,074 cuts were recorded.
Experts note that January often sees elevated layoff announcements as companies finalize budgets, adjust staffing to meet financial targets, and respond to shifting economic conditions. However, the scale of this year’s increase stands out.
Key Drivers Behind the Layoffs
The transportation sector led the way with 31,243 announced job cuts, largely driven by logistics giant UPS, which cited the loss of a major delivery contract with Amazon as a key factor in plans to eliminate up to 30,000 positions and close multiple facilities.
The technology sector followed closely, with 22,291 cuts. Amazon contributed significantly to this total through restructuring and efficiency measures, including shifts toward automation.
Healthcare and related products companies announced 17,107 layoffs, the highest monthly figure for the sector since 2020. Other notable drivers included contract losses (30,784 cuts), market and economic conditions (28,392 cuts), and restructuring efforts (20,044 cuts).
Artificial intelligence (AI) was directly cited as a reason for 7,624 layoffs in January—about 7% of the month’s total—continuing a trend where companies increasingly turn to automation to streamline operations.
Broader Labor Market Context
The surge in layoffs coincides with subdued hiring plans. Employers announced just 5,306 new positions in January—the lowest January hiring total on record since Challenger began tracking the data. This wide gap between cuts and new hires echoes patterns seen during economic downturns and suggests a more challenging job market for workers seeking new opportunities.
Andy Challenger, chief revenue officer at Challenger, Gray & Christmas, described the data as a sign of pessimism about the 2026 outlook. “It means most of these plans were set at the end of 2025, signaling employers are less-than-optimistic about the outlook for 2026,” he said.
While the report tracks announced plans (actual job losses may occur over weeks or months and could be adjusted), the numbers highlight mounting pressure on the U.S. labor market amid uncertainties around economic growth, consumer demand, and policy changes.
As 2026 unfolds, economists and workforce experts will watch closely to see whether this January spike proves to be a seasonal blip or the start of a broader trend in corporate cost-cutting and restructuring.
For now, the data paints a picture of a labor market shifting gears—away from expansion and toward caution.
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