Layoffs hit their worst January levels since 2009, Challenger says

Group 1 - U.S. employers announced 108,435 layoffs in January 2026, marking a 118% increase from January 2025 and a 205% increase from December 2025, the highest January total since 2009 [2][5] - Companies reported only 5,306 new hires in January 2026, the lowest figure for that month since 2009, indicating a significant decline in hiring intentions [2][5] - The transportation sector experienced the highest level of layoffs, primarily due to UPS's plan to cut over 30,000 jobs, while Amazon announced a reduction of 16,000 jobs, mainly at the corporate level [5] Group 2 - The Challenger data suggests a shift in the labor market, with increased layoffs indicating that employers are less optimistic about the economic outlook for 2026 [3] - Initial jobless claims for the week ending January 24 were reported at 209,000, with a longer-term trend near its lowest level in two years, contrasting with the layoff announcements [4] - Over 100 companies have notified the Labor Department of significant layoffs under Worker Adjustment and Retraining Notification regulations, highlighting the scale of job cuts [6]