US firms announced highest number of January job cuts since 2009
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The news: US companies announced the largest number of job cuts during the first month of the year since 2009, according to data from outplacement firm Challenger, Gray & Christmas.
The numbers: Data from the firm released Thursday showed US employers announced 108,435 layoffs in January, up 118% from the same period a year ago and 205% from December 2025.
The total figure marked the highest number for any January since 2009, the final stretch of the recession.
Labor Department data also released Thursday saw US unemployment benefits applications rise by more than forecast for the week ending 31 January. Initial claims increased by 22,000 to 231,000, exceeding all estimates in a Bloomberg survey of economists.
The context: “Generally, we see a high number of job cuts in the first quarter, but this is a high total for January. It means most of these plans were set at the end of 2025, signalling employers are less-than-optimistic about the outlook for 2026,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.
The transportation, tech and healthcare sectors saw the highest number of job cuts during January, after UPS cut 30,000 jobs and Amazon laid off 16,000 workers.
“CEO Andy Jassy, like many CEOs recently, has said AI will cost jobs in the coming years, but this cut appears to be due more to over hiring and reducing layers than to the new technology,” said Challenger.
Healthcare companies and health products manufacturers, including Hospitals, announced 17,107 job cuts in January, the most for the industry since April 2020.
The sources: Challenger, Gray & Christmas, US Labor Department, Bloomberg, CNBC
