January layoffs hit highest level since 2009 as monthly job cuts surge

• Transportation led with 31,243 cuts (mostly UPS eliminating 30,000 jobs due to reduced Amazon shipments), followed by technology with 22,291 cuts (primarily Amazon management restructuring)
• Healthcare announced 17,107 cuts, the sector's highest since April 2020, driven by inflation, high labor costs, and lower Medicaid/Medicare reimbursements
• Hiring plans dropped to 5,306 in January, the lowest since tracking began in 2009, down from 6,089 in January 2025 and 10,496 in December 2025

Summary: January 2026 Layoffs Reach Highest Level Since 2009

Key Figures:

U.S. employers announced 108,435 job cuts in January 2026, representing a 205% surge from December's 35,553 layoffs and more than double the 49,795 cuts announced in January 2025. This marks the highest January total since 2009, when 241,749 cuts were recorded, and the largest monthly figure since October 2025 (153,074 layoffs).

Sectors and Companies Affected:

• Transportation led with 31,243 cuts, primarily from UPS announcing 30,000 layoffs as it scales back Amazon shipments
• Technology followed with 22,291 cuts, mainly from Amazon's management restructuring
• Healthcare recorded 17,107 cuts—the highest since April 2020—due to inflation, labor costs, and reduced Medicare/Medicaid reimbursements
• Chemical manufacturers announced 4,701 cuts, led by Dow amid AI and automation shifts

Reasons for Layoffs:

• Contract loss: 30,784 cuts
• Market/economic conditions: 28,392 cuts
• Restructuring: 20,044 cuts
• AI-related: 7,624 cuts

Market Implications:

The data signals employer pessimism about 2026's economic outlook, with most decisions made in late 2025. Hiring plans fell to 5,306—the lowest since tracking began in 2009—down from 6,089 in January 2025 and 10,496 in December 2025.

Analysts note that while AI is frequently cited, current cuts appear driven more by overhiring corrections and cost management than technological displacement, though markets are rewarding companies emphasizing AI initiatives.