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January Layoff Announcements Surge to Highest Since 2009 as U.S. Labor Demand Ebbs

Fresh data point to employers turning cautious in setting 2026 workforce plans.

Overview

  • U.S. employers announced 108,435 job cuts in January, the largest January total since 2009, according to Challenger, Gray & Christmas.
  • Roughly 40% of the announced reductions stem from two companies, with Amazon planning about 16,000 corporate cuts and UPS targeting up to 30,000 roles.
  • Job vacancies fell to about 6.5 million in December, the lowest level since September 2020, Labor Department data show.
  • Private-sector payrolls grew by only about 22,000 in January, ADP reported, while planned hiring totaled just 5,306, a record January low in Challenger’s data.
  • Companies most often cited contract losses, economic and market conditions, and restructuring or closures for the cuts, with 7,624 attributed to artificial intelligence as Challenger marked a third layoff peak in 36 months.