Washington, DC – US companies laid off the most employees in January since the height of the global financial crisis in 2009, according to data from rehire services firm Challenger, Gray & Christmas. Bloomberg News reported that companies announced 108,435 layoffs in January, a sharp 118 percent year-over-year increase compared to the same month last year.
The report, released Thursday, also revealed a 13 percent year-on-year decline in hiring intentions, to just 5,306 jobs – the lowest level recorded for January since the company began collecting data in 2009. Andy Challenger, chief revenue officer at Challenger, Gray & Christmas, said, “The first quarter of the year typically sees a high number of layoffs, but the figure for January is remarkably high.” He added that this suggests most of these plans were made towards the end of 2025, reflecting a less optimistic outlook among employers for 2026. According to the report, contract losses, economic conditions, and restructuring topped the list of reasons companies announced job cuts last month.
The report indicated that nearly half of the layoffs announced in January were linked to three major companies: Amazon.com, United Parcel Service (UPS), and Dow. Amazon announced plans to eliminate 16,000 management positions as part of a restructuring process. UPS stated its intention to cut up to 30,000 jobs. Chemical giant Dow also plans to eliminate approximately 4,500 positions. Peloton Interactive and Nike also announced workforce reductions. These figures further highlight the fragility of the US labor market, characterized by a relatively low overall number of layoffs coupled with sluggish hiring. This has raised concerns among consumers, according to Bloomberg. Meanwhile, policymakers at the US Federal Reserve maintain that the unemployment rate continues to show “some signs of stabilization,” despite the ongoing challenges.
