Layoffs in January were the highest to start a year since 2009, Challenger says
Layoffs Hit Highest January Total Since 2009, Hiring Intentions Lowest
In a recent report by outplacement firm Challenger, Gray & Christmas, it was revealed that layoff plans in the United States have reached their highest January total since the global financial crisis. At the same time, hiring intentions have plummeted to their lowest level since the same period, indicating a potentially challenging labor market ahead.
According to the report, U.S. employers announced a staggering 108,435 layoffs in January, marking a significant increase of 118% from the same period last year and 205% from December 2025. This total is the highest for any January since 2009, when the economy was grappling with the aftermath of the Great Recession.
Conversely, companies announced only 5,306 new hires in January, the lowest figure for the month since 2009. This data suggests a stark contrast to the recent narrative of a no-hire, no-fire labor market, indicating that employers may be less optimistic about the economic outlook for 2026.
Andy Challenger, workplace expert and chief revenue officer at Challenger, Gray & Christmas, commented on the findings, noting that the high number of job cuts in the first quarter is unusual and may signal a lack of confidence among employers for the year ahead.
Despite the increase in layoff announcements, official government data has not yet reflected a significant rise in furloughed workers. Initial jobless claims for the week ending January 31 did see a spike to 231,000, the highest since early December, likely influenced by a severe winter storm. However, the longer-term trend remains relatively stable.
Several high-profile companies, including Amazon, UPS, and Dow Inc., have recently announced substantial job cuts, contributing to fears of broader damage in the labor market. The transportation sector saw the highest number of layoffs in January, primarily due to UPS’s plan to eliminate over 30,000 positions. The technology sector followed closely behind, with Amazon announcing the shedding of 16,000 mostly corporate-level jobs.
Planned hiring in January dropped by 13% compared to the same period in 2025 and was down by 49% from December. While Challenger’s data can be volatile and may not directly correlate with official statistics, filings under Worker Adjustment and Retraining Notification regulations indicate that over 100 companies have given notice of significant layoffs.
In a separate report, the Bureau of Labor Statistics revealed a sharp decline in job openings in December, falling to 6.54 million, the lowest level since September 2020. This decrease has led to a ratio of available jobs to unemployed workers of 0.87 to 1, down from over 2 to 1 at its peak in mid-2022.
On a related note, ADP reported that private employers added a mere 22,000 jobs in January, further underscoring the challenges facing the labor market. As businesses navigate uncertain economic conditions, the landscape for job seekers and workers remains uncertain, with potential implications for the broader economy.
