January Layoff Surge: Employers Cut Jobs Amidst Hiring Slowdown
January saw a significant increase in layoff announcements, reaching the highest total since the global financial crisis, according to a report by Challenger, Gray & Christmas. U.S. employers reported 108,435 layoffs, a substantial rise from the previous year and December 2025. This marked the highest number of layoffs for any January since 2009, during the economic downturn. In contrast, new hiring intentions hit a low, with only 5,306 new hires announced, the lowest January figure since 2009 when tracking began.
The data from Challenger suggests a shift in the labor market narrative, with more emphasis on layoffs rather than a no-hire no-fire approach. The high number of job cuts in January indicates a lack of optimism among employers for the year ahead. Despite this trend, official government data on initial jobless claims remains relatively low, with a longer-term trend near a two-year low.
While government data may not reflect a significant increase in furloughs, some notable companies have announced substantial layoffs. Amazon, UPS, and Dow Inc. are among those that have recently announced job cuts. The transportation sector saw the highest number of layoffs in January, primarily due to UPS's plan to cut over 30,000 jobs. Technology followed closely behind, with Amazon announcing the elimination of 16,000 corporate-level positions.
Planned hiring for January declined compared to the previous year, dropping by 13% and decreasing by 49% from December. The data indicates a challenging start to the year for the labor market, with employers showing caution in their hiring and retention strategies. The current economic landscape suggests a more cautious approach to workforce management in the months ahead.