Job cuts announced in January hit their highest start-of-year level since 2009, when the U.S. was in the depths of the Great Recession, according to a new report.
U.S.-based employers disclosed plans for 108,435 job cuts in January 2026—a 118% jump from the 49,795 cuts announced in January 2025—based on an analysis released Thursday, Feb. 5, by global outplacement and executive coaching firm Challenger, Gray & Christmas.
The report says this is the largest January total since 2009, when employers announced 241,749 cuts.
“Typically, we see a high number of job-cut announcements in the first quarter, but this is a notably elevated January figure,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas. He added that many of these decisions were likely finalized late in 2025, suggesting employers are entering 2026 with a cautious outlook.
The January total also rose sharply from December 2025, when 35,553 job cuts were announced—an increase of 205% month over month. The report adds that January represents the highest monthly total since October 2025, when 153,074 cuts were recorded.
Industries and States Hit Hardest
By sector, the transportation industry recorded the most announced layoffs in January, with more than 31,000 cuts. Technology followed with more than 22,000, then health care, along with the products, chemical, and financial industries.
Geographically, the largest number of job cuts were reported in Georgia (more than 31,000), followed by Michigan and Washington, each with more than 19,000 cuts.
What’s Driving the Cuts
The leading cause cited for January layoffs was contract loss, according to the report. Other frequently cited drivers included market and economic conditions, restructuring, and store, unit, or department closures.
Artificial intelligence was also listed among the reasons behind some reductions, accounting for 7% of the total job cuts announced in January 2026, the report stated. Still, Challenger noted that it remains hard to isolate AI’s direct impact on layoffs.
Hiring Plans Also Sink
The report also pointed to a sharp drop in hiring intentions: employers announced just 5,306 hiring plans in January—described as the lowest January total since Challenger began tracking hiring plans in 2009.
Meanwhile, the most recent U.S. Bureau of Labor Statistics data released in December reported that both the unemployment rate (4.4%) and the number of unemployed people (7.5 million) “changed little” from November. Updated data for January is expected on Wednesday, Feb. 11.
