US Layoffs In January Surge To Highest Since 2009, Hiring Slumps To Record Low

• Employers also announced 5,306 hiring plans in January, which was the lowest total for the month since Challenger began tracking hiring plans in 2009.
• The report noted that companies in the Transportation industry cut 31,243 jobs in January, the highest of those listed in the Challenger report.
• The Technology sector ranked second with 22,291 layoffs during the month, following Amazon's announcement of 16,000 job cuts.

Layoffs in January hit the highest levels since 2009, with U.S.-based employers announcing 108,435 job cuts during the month, according to the latest report by consulting firm Challenger, Gray & Christmas.

“Generally, we see a high number of job cuts in the first quarter, but this is a high total for January. It means most of these plans were set at the end of 2025, signaling employers are less-than-optimistic about the outlook for 2026,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.

The firm stated that layoffs in January were the highest in January 2009, when 241,749 job cuts were announced.

Employers also announced 5,306 hiring plans in January, which was the lowest total for the month since Challenger began tracking hiring plans in 2009.

Which Industries Are Laying Off?

The report noted that companies in the Transportation industry cut 31,243 jobs in January, the highest of those listed in the Challenger report.

The Technology sector ranked second, with 22,291 job cuts during the month. Amazon.com Inc. (AMZN) was the primary source of these cuts, as it laid off 16,000 employees.

“CEO Andy Jassy, like many CEOs recently, has said AI will cost jobs in the coming years, but this cut appears to be due more to overhiring and reducing layers than to the new technology,” Challenger stated in the report.

Healthcare companies, health product manufacturers, and hospitals announced 17,107 layoffs during January, the most cuts for the industry since April 2020, when 19,453 job cuts were recorded.

Job Creation Took A Step Back In 2025, Says ADP

Meanwhile, according to the ADP jobs report released on Wednesday, private employers added only 398,000 jobs in 2025, down from 771,000 in 2024.

The manufacturing sector reported 8,000 reductions during January, the firm stated, having lost jobs every month since March 2024.

The report showed that while mid-sized businesses added 41,000 jobs during the month, large businesses reported a net reduction of 18,000 employees. Small businesses were flat for the month.

Overall, U.S. companies added 22,000 jobs during the month, while analysts expected an addition of 45,000 roles, according to a Dow Jones consensus as cited by MarketWatch.

Meanwhile, U.S. equities declined in Thursday’s opening trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.9%; the Invesco QQQ Trust ETF (QQQ) fell 1.13%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 0.59%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.

Also See: Peloton Earnings Miss Wall Street Expectations Amid Increasing Subscriber Churn

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