In January 2026, employers in the United States reported 108,435 job cuts, marking the highest level since October and standing as the largest January figure since 2009. This figure starkly contrasts with the 33,553 job cuts recorded in December. Andy Challenger, Chief Revenue Officer at Challenger, Gray & Christmas, remarked, "It is common to witness a significant number of job cuts in the first quarter, but this particular January total is noteworthy. It suggests that many of these plans were formulated at the close of 2025, reflecting a less-than-optimistic sentiment among employers regarding the economic outlook for 2026."
The transportation sector reported the most substantial number of job cuts, totaling 31,243, primarily due to UPS, which announced the elimination of 30,000 jobs following its decision to sever ties with Amazon. The technology sector announced 22,291 job cuts, with Amazon accounting for a significant portion by restructuring its management layers, resulting in 16,000 job losses. In the healthcare sector, including health product manufacturers, 17,107 job cuts were announced, the highest for the industry since April 2020. On the hiring front, employers announced plans to hire 5,306 individuals, the lowest January hiring figure since records began in 2009.