Job Cuts In January: Worst Ever In 17 Years?
The main reasons cited for the layoffs were loss of contracts and broader economic uncertainty.;
2026 started on the worst possible note for global employees as companies have been firing workers on a constant and alarming level. It is now being established that the number of layoffs recorded in January 2026, is the worst ever tally for the start of the year in 17 years.
In January, U.S. employers announced 108,435 layoffs, marking a sharp 205% increase from December and the highest January total since 2009, according to Challenger, Gray & Christmas. The surge in job cuts was driven primarily by the transportation and technology sectors.
UPS led the transportation layoffs, planning up to 30,000 job reductions, while Amazon accounted for 16,000 of the tech sector’s cuts. Healthcare also experienced significant workforce reductions during the month.
The main reasons cited for the layoffs were loss of contracts and broader economic uncertainty. Technological advancements, particularly artificial intelligence, contributed to a smaller portion, accounting for 7% of total job cuts. These figures highlight a challenging employment landscape, with companies responding cautiously to economic pressures and shifting market conditions.
Hiring intentions were equally weak in January, with only 5,306 new positions announced the lowest for any January on record. This combination of high layoffs and minimal hiring reflects a cautious approach by U.S. businesses, emphasizing cost management and strategic adjustments in the face of economic unpredictability.
Analysts suggest that unless economic conditions stabilize, these trends could continue, affecting both job seekers and industry growth across key sectors.
The data underscores growing concerns about employment stability, particularly in major industries like transportation, tech, and healthcare.