January layoffs rose to the highest level for the month since 2009

• Transportation sector led with 31,243 job cuts, mostly from UPS scaling back its Amazon shipping operations
• Technology firms announced 22,291 cuts, with Amazon reducing management layers amid restructuring rather than AI-driven eliminations
• Healthcare and health products manufacturers cut 17,107 jobs due to inflation, high labor costs, and lower Medicaid/Medicare reimbursements

Summary: January 2025 Layoffs Surge to Post-Financial Crisis High

U.S. employers announced 108,435 job cuts in January 2025, marking the highest level for the month since 2009 and representing a 205% increase from December's 35,553 layoffs, according to outplacement firm Challenger, Gray & Christmas. The figure more than doubled compared to January 2024's 49,795 cuts.

Key Drivers and Sectors:

The transportation sector led with 31,243 cuts, primarily from UPS announcing 30,000 layoffs as it scales back Amazon shipment handling operations. The technology sector followed with 22,291 cuts, dominated by Amazon's 16,000-job reduction amid management restructuring.

Healthcare and pharmaceuticals announced 17,107 cuts—the highest since April 2020—driven by inflation pressures, elevated labor costs, and reduced Medicare/Medicaid reimbursements. Chemical manufacturers cut 4,701 positions, led by Dow's AI and automation shift.

Market Implications:

Workplace expert Andy Challenger noted these plans were likely finalized in late 2025, signaling pessimistic employer outlooks for 2026. While Amazon CEO cited AI's potential to eliminate jobs long-term, Challenger attributed the current tech cuts more to overhiring and organizational delayering than technological displacement.

Primary Reasons:

• Contract loss: 30,784 cuts
• Restructuring: 28,392 cuts

The January surge represents the highest monthly layoff total since October 2025 (153,074 cuts), indicating employers are proactively cutting costs amid economic uncertainty. The concentration in transportation and technology sectors suggests significant structural shifts driven by business relationship changes and operational efficiency initiatives.