US Job Cuts Surge to Highest Level Since 2009

New data shows that US job cuts reached their highest level since the 2009 global financial crisis, signaling mounting pressure on the labor market at the start of 2026.

According to a report by Challenger, Gray & Christmas, US companies announced 108,435 layoffs in January, marking a sharp 118% increase compared to the same month last year.

Sharp Decline in Hiring Plans

Alongside the surge in US job cuts, hiring intentions fell by 13% year-on-year to just 5,306 planned positions, the lowest January figure recorded since the firm began tracking the data in 2009.

Andy Challenger noted that while the first quarter typically sees elevated layoffs, the scale of US job cuts this year is particularly notable, reflecting a more cautious outlook among employers for 2026.

Drivers Behind the Layoffs

The report cited lost contracts, economic conditions, and corporate restructuring as the primary reasons for the workforce reductions.

Nearly half of January’s announced layoffs were linked to three major corporations.

Amazon revealed plans to eliminate 16,000 administrative roles as part of restructuring efforts, while UPS announced potential cuts of up to 30,000 jobs.

Chemical giant Dow plans to reduce about 4,500 positions, with additional workforce reductions reported by Peloton and Nike.

These figures add to concerns about a potential slowdown in the US labor market amid persistent economic uncertainty and rising operational costs.