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Layoffs in January were the highest to start a year since 2009, Challenger says
CNBC· 2026-02-05 12:45
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 January 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 data from Challenger, Gray & Christmas suggests a shift in the labor market towards increased layoffs, with many plans likely set at the end of 2025, reflecting a pessimistic outlook for 2026 [3][5] - 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, indicating a broader trend of job cuts [6]