UPS and Amazon drove a 205% increase in US layoffs in January, reaching a 17-year record

US Layoffs Jump 205% in January, Hit 17-Year High Amid Economic Uncertainty

Layoffs announced by US employers surged sharply in January, reaching their highest level for the month in 17 years, as companies grappled with lost business contracts and an uncertain economic outlook, according to a report released Thursday.

Planned job cuts soared 205% month-on-month to 108,435, global outplacement firm Challenger, Gray & Christmas said. The figure marks the highest January total since 2009, during the aftermath of the Great Recession.

Layoffs were also 118% higher compared with January last year, signaling growing caution among employers.

“Generally, we see a high number of job cuts in the first quarter, but this is a high total for January,” said Andy Challenger, workplace expert at the firm. “Most of these plans were set at the end of 2025, signaling employers are less-than-optimistic about the outlook for 2026.”

Transportation and tech lead cuts

The transportation sector recorded the biggest reductions, announcing 31,243 job cuts, largely tied to UPS.

The parcel delivery giant said it plans to eliminate up to 30,000 jobs and shut 24 facilities in 2026 as it reduces shipments for Amazon and shifts toward higher-margin operations.

The technology sector followed with 22,291 layoffs, most notably:

• Amazon, which announced 16,000 corporate job cuts

Despite the headline numbers, Challenger noted that such planned layoffs may not significantly affect weekly unemployment claims, as similar high-profile cuts last year did not trigger sharp spikes in jobless filings.

Other sectors feel pressure

Healthcare also saw notable reductions, partly linked to lower reimbursements under government-funded Medicaid and Medicare programs.

Key reasons cited for layoffs included:

• Loss of contracts

• Weak market and economic conditions

• Corporate restructuring

• Store and department closures

AI impact remains limited

Artificial intelligence accounted for about 7% of announced cuts, though its broader influence remains unclear.

“It’s difficult to say how big an impact AI is having on layoffs specifically,” Challenger said. “Leaders are talking about AI, companies want to implement it, and the market appears to reward those mentions.”

Hiring slows sharply

Hiring plans remained subdued, with only 5,306 new hiring intentions announced — the lowest January level since tracking began in 2009. Most planned additions were in the insurance sector.

The weak hiring outlook suggests companies are tightening budgets as they brace for slower growth and continued economic uncertainty.