U.S. employers announced 108,435 planned job cuts in January, according to Challenger, Gray & Christmas. That is the highest January total since 2009. Challenger said cuts were up 118% from a year earlier and up 205% from December. It also reported 5,306 planned hires, the lowest January hiring total in its data series. BLS and U.S. Labor Department data showed softer labor conditions before this report. Planned cuts are not the same as actual layoffs.
Historical comparison: January in context
Challenger data show January 2026 is the highest January reading since 2009.
January 2026: 108,435 planned cuts.
Recent January totals in 2024 and 2025 were much lower.
Crisis-era January 2009 was also very high, which is why this comparison is used.
Key numbers
- 108,435 planned job cuts in January 2026
- +118% vs January 2025
- +205% vs December 2025
- 5,306 planned hires in January 2026
- 1.8 million layoffs/discharges in December 2025 (JOLTS)
- 231,000 initial jobless claims (week ending Jan. 31, 2026)
Where the January cuts were
Challenger said transportation and technology had the largest announced cuts.
Transportation: more than 31,000.
Technology: 22,291.
The report listed contract losses and market conditions as the main reasons. It also listed AI and tariff-related actions as smaller factors.
Federal data and method note
According to BLS, December JOLTS showed 6.5 million job openings and 1.8 million layoffs/discharges. BLS said layoffs/discharges were little changed.
Labor Department data showed 231,000 initial claims for the week ending January 31. The four-week average was 212,250.
Method note: Challenger tracks company announcements. Announced cuts may happen later, may change in size, or may not happen in full. The series also does not cover every employer in the U.S. economy.
Why this matters now: January often shapes the labor story for Q1, and markets watch claims and openings for confirmation.
SOURCES
- https://www.challengergray.com/wp-content/uploads/2026/02/CR126007123.pdf
- https://www.challengergray.com/blog/challenger-report-january-job-cuts-surge-lowest-january-hiring-on-record/
- https://www.bls.gov/news.release/pdf/jolts.pdf
- https://www.dol.gov/ui/data.pdf
- https://www.reuters.com/business/world-at-work/ups-amazon-boost-us-planned-layoffs-january-challenger-survey-shows-2026-02-05/
DISCLAIMER
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