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Layoffs hit their worst January levels since 2009, Challenger says

U.S. firms announced 108,435 layoffs in January 2026, a 118% increase year-over-year, driven by major cuts in transportation and technology sectors, while hiring hit a 17-year low.

  • Thursday, outplacement firm Challenger, Gray & Christmas reported U.S. employers announced 108,435 layoffs for January, the highest since 2009, while new hires fell to 5,306.
  • Amazon, UPS and Dow Inc. announced sizeable job cuts recently, with UPS planning over 30,000 cuts in transportation and Amazon shedding 16,000 corporate jobs in technology.
  • Challenger said `generally, we see a high number of job cuts in the first quarter, but this is a high total for January`, highlighting concerns over layoffs not reflected in official data.
  • WARN filings show more than 100 companies issued layoff notices in January, while planned hiring dropped 13% year-over-year and 49% from December, signaling weaker employers' 2026 outlook.
  • Compared with 2009, the January total was the highest since January 2009 during the 2009 crisis recession, but Challenger data volatility complicates alignment with official statistics.
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In January, companies fired over 108,000 employees.

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Reuters broke the news in United Kingdom on Thursday, February 5, 2026.
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