U.S. employers announced over 108,000 job cuts in January 2026, reaching the highest monthly total for the month in 17 years. This figure represents a dramatic increase of 118% compared to January 2025, as reported by outplacement firm Challenger, Gray & Christmas. The January layoffs also rose 205% from December 2025, highlighting a significant shift in the employment landscape as companies reassess their workforce needs.
The transportation sector accounted for the largest share of these layoffs, significantly impacted by UPS‘ announcement of 30,000 job cuts related to the end of its partnership with Amazon. Following closely was the technology industry, where Amazon itself revealed plans to eliminate 16,000 jobs. These layoffs illustrate the challenges faced by companies across various sectors, with contract losses cited as the primary reason for the cuts.
Waning Hiring Plans Signal Economic Uncertainty
In stark contrast to the job cuts, U.S. companies announced only 5,306 new hires in January 2026. This figure marks the lowest hiring total for the month since Challenger, Gray & Christmas began tracking data in 2009. The disparity between layoffs and hiring plans has created one of the widest gaps on record, indicating a cautious approach from employers as they navigate the economic landscape heading into 2026.
According to Andy Challenger, chief revenue officer at Challenger, Gray & Christmas, the number of job cuts is particularly striking for January. “Generally, we see a high number of job cuts in the first quarter, but this is a high total for January,” he stated. “It means most of these plans were set at the end of 2025, signaling employers are less-than-optimistic about the outlook for 2026.”
The impact of technological advancements, particularly in artificial intelligence, also played a notable role in the job losses. AI was attributed to 7% of total cuts in January, exceeding the average of 3% since tracking began in 2003. This trend indicates a growing reliance on technology in ways that may lead to further workforce reductions in the near future, as companies, including Amazon, hint at potential AI-related job cuts in upcoming months.
Overall, January 2026 has emerged as a pivotal month in the employment sector, with record job cuts signalling a shift in employer sentiment and a cautious approach to hiring. As the economic landscape continues to evolve, workers and job seekers may face ongoing challenges in securing employment amidst these turbulent conditions.
