Layoffs are surging. In January, U.S. companies announced 108,435 job cuts. That’s a staggering 118% increase from last year and the highest January total since the global financial crisis of 2009. During that time, the economy was struggling, marking one of the toughest downturns in recent history.
At the same time, hiring has plummeted. Companies reported only 5,306 new hires, the lowest since 2009 when Challenger, Gray & Christmas started tracking these numbers. This sharp decline suggests a grim outlook for the job market this year.
Andy Challenger, a workplace expert, noted that the wave of layoffs likely reflects employers’ concerns about the economy moving forward. “Most of these job cuts were planned at the end of 2025,” he explained. “Employers seem less optimistic about 2026.”
Interestingly, while layoffs rise, official jobless claims are not showing a matching spike. In the last week of January, there were 231,000 claims filed, the highest number since December. This increase may be partly due to seasonal factors, like winter storms, making it harder for some to work.
Certain sectors are seeing more significant impacts. For instance, UPS announced plans to cut over 30,000 jobs, making transportation the most affected industry. The tech sector isn’t far behind—Amazon has also revealed plans to eliminate 16,000 jobs, particularly in corporate positions.
Despite these layoffs, the overall labor market remains somewhat stable. Official data doesn’t show a dramatic rise in unemployment just yet, but many are keeping a close eye on trends. Historically, layoffs tend to rise in the first quarter of the year.
The ongoing shift in the labor market highlights the uncertainty many workers face. It’s evident that while some sectors are flourishing, others are struggling to retain staff.
For those interested in more in-depth analysis, a report from the Bureau of Labor Statistics provides a comprehensive view of employment trends and future forecasts.
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