US firms laid off over 108,000 workers in January. This represents an 118% surge compared to the same period in 2025, marking the highest figures seen since 2009.
According to Bloomberg, citing data from Challenger, Gray & Christmas Inc., a firm assisting laid-off personnel, American corporations announced the largest volume of job cuts in January since the zenith of the Great Recession in 2009.
Across January, US companies eliminated 108,435 positions, equating to a 118% increase over the figures from the corresponding period in 2025. Furthermore, hiring intentions dropped by 13% year-over-year, totaling just 5,306 planned hires—the lowest recorded for any January since Challenger, Gray & Christmas Inc. began tracking this data (in 2009).
Andy Challenger, the firm’s Director of Career Insight, commented: “We typically observe a significant number of job reductions in the first quarter, but this is the highest January total. Most of these actions were planned toward the close of 2025, indicating that employers hold rather pessimistic outlooks for 2026.”
The report indicated that the primary drivers behind the January layoffs included losing significant client contracts, prevailing economic conditions, and necessary restructuring efforts.
Major US corporations announced the dismissal of 52,000 personnel.
Specifically, nearly half of all January reductions occurred amongst Amazon.com Inc. (the leading online retailer), United Parcel Service Inc. (UPS, the foremost delivery service), and Dow Inc. (the chemical conglomerate).
Amazon revealed plans to shed 16,000 corporate roles as part of a restructuring drive, while UPS stated it would cut up to 30,000 jobs. Dow intends to dismiss approximately 4,500 employees. Further announcements of workforce reductions came from Peloton Interactive Inc. (the fitness equipment maker) and Nike Inc (the sports apparel and footwear producer).
Toward the end of January, the Financial Times reported that major US entities like Amazon, UPS, Dow, Nike, Home Depot, and others planned to reduce their workforces by over 52,000 positions, citing economic uncertainty and the necessity to heavily invest in artificial intelligence as rationales.
UPS CFO Brian Newman attributed these measures to cost streamlining efforts, partly driven by decreased shipping volumes for Amazon. Amazon itself aimed to eliminate “bureaucracy,” while Dow framed its cuts as part of a strategy for “radical simplification of its operating model.”
Despite these significant layoff numbers, the overall unemployment rate in the US remains low. The Federal Reserve noted that the December 2025 jobless rate stood at 4.4%, suggesting “signs of stabilization” within the labor market.
Data from the recruitment firm Challenger, Gray & Christmas shows that US businesses let go of 1.2 million workers throughout 2025. This figure exceeded the 2024 total by 58%.
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