US job cuts surge to highest January level since 2009

US companies announced the largest number of job cuts for any January since the depths of the global financial crisis in 2009, highlighting growing uncertainty about the economic outlook for 2026.

According to data released on February 5 by outplacement firm Challenger, Gray & Christmas Inc., employers announced 108,435 job cuts in January, representing a 118% increase compared with the same month last year. The report also showed that hiring intentions fell 13% year on year to just 5,306, the weakest January total in records dating back to 2009, Bloomberg cites the data.

“Generally, we see a high number of job cuts in the first quarter, but this is a high total for January,” said Andy Challenger, the company’s chief revenue officer. “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 most frequently cited reasons for workforce reductions were contract losses, broader economic conditions and corporate restructuring, the report found.

Nearly half of all job cuts announced in January were concentrated among three major US companies. Amazon.com Inc., the world’s largest online retailer, said it plans to eliminate 16,000 corporate roles as part of a restructuring effort. United Parcel Service Inc. (UPS), a global logistics company, announced it could cut up to 30,000 jobs.

Chemical manufacturer Dow said it intends to remove approximately 4,500 positions from its workforce. Other companies announcing job reductions included fitness equipment maker Peloton Interactive Inc. and sportswear giant Nike Inc.

The latest figures add to signs of fragility in the US labor market, which has been marked by relatively low levels of layoffs overall but subdued hiring activity. This environment has unsettled consumers, even as US Federal Reserve policymakers say the unemployment rate is showing “some signs of stabilization.”

By Sabina Mammadli