January layoffs hit highest level since 2009 as – Business News
U.S. employers’ introduced job cuts surged within the month of January and hit the highest level since 2009, a new report reveals.
Global outplacement and govt teaching firm Challenger, Gray & Christmas discovered that employers introduced 108,435 job cuts in January – an increase from the 49,795 cuts introduced in the identical month final 12 months. Job cuts elevated 205% from December, when there have been 35,553 layoffs introduced.
This January noticed essentially the most layoffs for the month since 2009, when 241,749 cuts have been introduced. It was additionally the highest month-to-month complete since October 2025, when there have been 153,074 layoffs.
“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, signaling employers are less-than-optimistic about the outlook for 2026,” mentioned Andy Challenger, office skilled and chief income officer for Challenger, Gray & Christmas.
The transportation sector had the highest quantity of job cuts within the month of January with 31,243 introduced, most of which got here from logistics giant UPS saying 30,000 cuts as it scales back on handling shipments for Amazon.
Technology corporations introduced 22,291 cuts in January, most of which got here from Amazon.
Technology corporations introduced 22,291 cuts in January, most of which got here from Amazon, which introduced 16,000 reductions as it reorganizes its management construction.
“[Amazon] 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,” Challenger famous.
Healthcare firms and health merchandise producers introduced 17,107 job cuts in January, which was essentially the most for the sector since April 2020 when 19,453 cuts have been recorded.
This January noticed essentially the most layoffs for the month since 2009, when 241,749 cuts have been introduced. Tada Images – stock.adobe.com
“Healthcare providers and hospital systems are grappling with inflation and high labor costs. Lower reimbursements from Medicaid and Medicare are also hitting hospital systems. These pressures are leading to job cuts, as well as other cutting measures, such as some pay and benefits,” Challenger mentioned.
Chemical producers introduced 4,701 cuts in January, which have been primarily pushed by an announcement at Dow amid an AI and automation shift.
The principal causes firms introduced layoffs in January have been contract loss, which was cited in relation to 30,784 cuts, whereas market and financial situations adopted with 28,392 cuts.
The Washington Post introduced that they have been present process widespread layoffs earlier this week. REUTERS
Other causes included restructuring (20,044 cuts), closings (12,738) and artificial intelligence (7,624).
Challenger famous that it’s tough to inform how a lot an influence AI is having on layoffs, saying that, “We know leaders are talking about AI, many companies want to implement it in operations, and the market appears to be rewarding companies that mention it.”
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The report additionally discovered that employers introduced 5,306 hiring plans in January, the bottom complete for the month since Challenger’s monitoring of the metric started in 2009.
That determine is down from the 6,089 hiring plans introduced in the identical month final 12 months, as effectively as from the ten,496 introduced in December.
