In January 2026, U.S. employers announced 108,435 layoffs, an increase of 118% compared to January 2025 and a staggering 205% rise from December 2025.
This marks the highest number of layoffs for any January since 2009, when the economy was still recovering from the Great Recession.
Simultaneously, companies reported only 5,306 new hires in January 2026, the fewest for January since Challenger, Gray & Christmas began tracking this data in 2009.
This represents a 13% decrease in hiring from January 2025 and a significant 49% drop from December 2025.
The transportation sector saw the highest number of layoffs in January 2026, largely driven by UPS's announcement to cut more than 30,000 jobs.
Additionally, Amazon disclosed plans to lay off 16,000 employees, focusing primarily on corporate positions, which contributed to the increase in layoffs within the technology sector.
Despite the rising layoffs, initial jobless claims for the week ending January 24, 2026, stood at 209,000. This number is part of a longer-term trend that is near its lowest level in two years, suggesting that not all companies are cutting jobs at the same pace.
Andy Challenger, a workplace expert and chief revenue officer at Challenger, Gray & Christmas, noted that the high number of job cuts in January indicates a less-than-optimistic outlook for the economy in 2026. "Most of these plans were set at the end of 2025," he said.
This suggests that employers are preparing for a challenging economic environment ahead.
