U.S. January Planned Layoffs Surge to Highest Level for the Month in 17 Years

Odaily News According to data, the U.S. Challenger Job Cuts monthly rate for January was 205%, compared to a previous value of -50.15%. Due to reduced business contracts and an uncertain economic outlook, the number of layoffs announced by U.S. employers surged in January, reaching the highest level for that month in 17 years. Employment firm Challenger, Gray & Christmas stated that planned layoffs last month surged 118% year-over-year to 108,435, marking the highest January figure since the global economic recession was nearing its end in 2009. "Typically, the first quarter sees a higher number of layoffs, but the total for January this year is also quite high," said Andy Challenger, the company's Chief Revenue Officer. "This suggests that most of these layoff plans were formulated at the end of 2025, indicating employers are not optimistic about the prospects for 2026." The increase in layoffs was primarily driven by the transportation sector, with plans related to United Parcel Service accounting for 31,243 job cuts. The technology sector announced 22,291 layoffs, largely from Amazon, which announced plans to cut 16,000 corporate positions. Additionally, significant planned layoffs were observed in the healthcare industry, partly due to reduced reimbursements from federally funded insurance programs Medicaid and Medicare. (Jin10)