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U.S. Layoff Announcements Hit Worst January Since 2009 as Hiring Plans Collapse

With the official January jobs data postponed, private indicators point to weaker hiring alongside rising cutbacks.

Overview

  • Employers announced 108,435 job cuts in January, the highest January total since 2009, while planned hires fell to 5,306, the lowest January on record, according to Challenger, Gray & Christmas.
  • UPS and Amazon accounted for a large share of the cuts, with about 30,000 and 16,000 roles respectively, concentrated in transportation and technology, with notable reductions also reported in healthcare.
  • ADP reported private payrolls rose by just 22,000 in January, with a 74,000 gain in education and health services offset by a 57,000 decline in professional and business services; wage growth held near 4.5% for job‑stayers and 6.4% for job‑changers.
  • Labor Department data show job openings fell to 6.5 million in December, the lowest level since September 2020, underscoring cooling labor demand.
  • Challenger said top reasons for planned cuts included contract losses, market and economic conditions, restructuring and closures, with artificial intelligence cited for 7,624 reductions.