January Sees Highest Job Cuts Since 2009 as Layoffs Reach New Peaks
Global advisor to CEOs and corporate boards Ram Charan joins Mornings with Maria to discuss the growth of AI in American businesses and the impact of technology on jobs.
In January, U.S. employers announced a staggering job cuts that surged to the highest level since 2009, according to a recent report. The global outplacement and executive coaching firm Challenger, Gray & Christmas revealed that employers announced 108,435 job cuts in January, a significant increase from the 49,795 cuts reported in the same month last year. This marks a dramatic 205% rise from December, which saw 35,553 layoffs announced.
This January recorded the most layoffs for the month since 2009, when 241,749 cuts were announced. It also represents the highest monthly total since October 2025, which had 153,074 layoffs. Andy Challenger, a workplace expert and chief revenue officer for Challenger, Gray & Christmas, noted, “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.”
PRIVATE SECTOR ADDED 22,000 JOBS IN JANUARY, WELL BELOW EXPECTATIONS
The uptick in January layoffs was driven by job cuts announced at UPS and Amazon. (Lindsey Nicholson/UCG/Universal Images Group)
The transportation sector led the job cuts in January, with 31,243 layoffs announced. A significant portion of these came from 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.”
UPS TO CUT 30,000 MORE JOBS AMID TURNAROUND PLAN
UPS announced 30,000 job cuts as it scales back its business with Amazon. (Kevin Carter)
Healthcare companies and health product manufacturers also faced challenges, announcing 17,107 job cuts in January—the highest for the sector since April 2020, when 19,453 cuts were recorded. Challenger explained, “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.”
Chemical manufacturers reported 4,701 cuts in January, primarily driven by an announcement from Dow amid a shift towards AI and automation.
AMAZON TO CUT 16,000 ROLES AS IT LOOKS TO INVEST IN AI, REMOVE ‘BUREAUCRACY’
Amazon announced 16,000 layoffs amid a restructuring. (Matthias Balk/picture alliance via Getty Images / Getty Images)
The primary reasons behind the layoffs in January included contract loss, which accounted for 30,784 cuts, followed by market and economic conditions with 28,392 cuts. Other factors included restructuring (20,044 cuts), closings (12,738), and artificial intelligence (7,624).
Challenger emphasized the uncertainty surrounding AI’s impact on layoffs, stating, “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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Additionally, the report indicated that employers announced only 5,306 hiring plans in January, marking the lowest total for the month since Challenger began tracking this metric in 2009. This figure is down from 6,089 hiring plans announced in the same month last year and significantly lower than the 10,496 announced in December.
Global advisor to CEOs and corporate boards Ram Charan joins Mornings with Maria to discuss the growth of AI in American businesses and the impact of technology on jobs.
In January, U.S. employers announced a staggering job cuts that surged to the highest level since 2009, according to a recent report. The global outplacement and executive coaching firm Challenger, Gray & Christmas revealed that employers announced 108,435 job cuts in January, a significant increase from the 49,795 cuts reported in the same month last year. This marks a dramatic 205% rise from December, which saw 35,553 layoffs announced.
This January recorded the most layoffs for the month since 2009, when 241,749 cuts were announced. It also represents the highest monthly total since October 2025, which had 153,074 layoffs. Andy Challenger, a workplace expert and chief revenue officer for Challenger, Gray & Christmas, noted, “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.”
PRIVATE SECTOR ADDED 22,000 JOBS IN JANUARY, WELL BELOW EXPECTATIONS
The uptick in January layoffs was driven by job cuts announced at UPS and Amazon. (Lindsey Nicholson/UCG/Universal Images Group)
The transportation sector led the job cuts in January, with 31,243 layoffs announced. A significant portion of these came from 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.”
UPS TO CUT 30,000 MORE JOBS AMID TURNAROUND PLAN
UPS announced 30,000 job cuts as it scales back its business with Amazon. (Kevin Carter)
Healthcare companies and health product manufacturers also faced challenges, announcing 17,107 job cuts in January—the highest for the sector since April 2020, when 19,453 cuts were recorded. Challenger explained, “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.”
Chemical manufacturers reported 4,701 cuts in January, primarily driven by an announcement from Dow amid a shift towards AI and automation.
AMAZON TO CUT 16,000 ROLES AS IT LOOKS TO INVEST IN AI, REMOVE ‘BUREAUCRACY’
Amazon announced 16,000 layoffs amid a restructuring. (Matthias Balk/picture alliance via Getty Images / Getty Images)
The primary reasons behind the layoffs in January included contract loss, which accounted for 30,784 cuts, followed by market and economic conditions with 28,392 cuts. Other factors included restructuring (20,044 cuts), closings (12,738), and artificial intelligence (7,624).
Challenger emphasized the uncertainty surrounding AI’s impact on layoffs, stating, “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.”
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Additionally, the report indicated that employers announced only 5,306 hiring plans in January, marking the lowest total for the month since Challenger began tracking this metric in 2009. This figure is down from 6,089 hiring plans announced in the same month last year and significantly lower than the 10,496 announced in December.
