Planned layoffs have now reached their highest rate since 2009’s Great Recession.
The data comes from outplacement firm Challenger, Gray & Christmas’s new layoffs report, which revealed that U.S.-based employers announced 108,435 job cuts in January, marking the highest rate to start a year since 2009. Also notable, in the same month, just 5,306 planned hires were announced—the lowest total on record for January.
According to the data, that means layoffs are up a staggering 118% from the same period a year ago, and 205% from December 2025.
“Generally, we see a high number of job cuts in the first quarter, but this is a high total for January,” Andy Challenger, workplace expert and chief revenue officer for the firm, said in the report. “It means most of these plans were set at the end of 2025, signaling employers are less than optimistic about the outlook for 2026.”
The hardest-hit sectors for layoffs are transportation, technology, and healthcare. According to a Reuters report, 31,243 planned cuts came from United Parcel Service (UPS). UPS intends to close 24 facilities in 2026, as part of a major restructuring effort.
On the tech side, there were 22,291 job cuts—most of which came from Amazon, as the company announced plans to lay off 16,000 corporate employees.
“Some of you might ask if this is the beginning of a new rhythm—where we announce broad reductions every few months,” wrote Beth Galetti, senior vice president of people experience and technology at Amazon, in an announcement last week. “That’s not our plan. But just as we always have, every team will continue to evaluate the ownership, speed, and capacity to invent for customers, and make adjustments as appropriate.”
Meanwhile, the healthcare sector has been struggling as a result of federal funding cuts, with 17,107 job reductions announced in January, making it the largest number since April 2020.
“Healthcare providers and hospital systems are grappling with inflation and high labor costs,” Challenger said. “Lower reimbursements from Medicaid and Medicare are also hitting hospital systems. These pressures are leading to job cuts, as well as other cutting measures, such as some pay and benefits. It’s very difficult for leaders of these companies to tighten budgets while not sacrificing patient care.”
Additionally, the Labor Department reported that job openings are down to the lowest rate since September 2020, as vacancies fell to 6.5 million in December.
Of course, many have been quick to blame artificial intelligence for a surging number of layoffs. But some experts say that it has more to do with current economic conditions, and AI is being used as a mere scapegoat.
In a post on BlueSky, CNBC journalist Carl Quintanilla shared a quote attributed to the firm Renaissance Macro Research, referencing the Challenger report and explaining the real reasons behind the downslide: “While there is quite a bit of attention on AI driving layoffs, most of the reasons cited in this data set are about ‘closing,’ ‘economic conditions,’ ‘restructuring,’ and ‘loss of contract.’ AI is a comparatively small factor behind the January jump in layoff news.”
That aligns with data from entities like the Brookings Institution and Yale University, which found that sectors (including ones especially susceptible to AI) haven’t seen drastic changes in the amount of available jobs since ChatGPT debuted in 2022.
Still, other experts continue to believe that AI’s toll on the job market will be crushing.
“We are at the beginning of a multi-decade progress development that will have a major impact on the labor market,” Gad Levanon, chief economist at the Burning Glass Institute, a workforce research firm, told CNBC last year.
“There’s probably much more in the tank,” he said.