The layoffs in January hit the biggest number in the US since the 2009 recession. “There were 108,435 layoffs in January, which 118% more than the previous year and more than double the layoffs in December.”
What’s more, the recruitment has slowed down to just 5,300 roles, the lowest in January in 17 years. The planned layoffs reached 205% to 108,435 last month, as reported by the outplacement firm Challenger, Gray & Christmas.
The transportation sector faced the highest number of layoffs after cuts as UPS moves to say goodbye to its 30,000 workers. Technology is in the second position after Amazon decides to cut 16,000 jobs. While these were the two major segments, no industry was left; there have been cuts in healthcare and business services as well.
The number of layoffs announced by U.S. companies surged in January this year due to the loss of business contracts and an uncertain economic environment. The global giant firm, Citi, announced that it will soon cut around 10% of its total employee force, which means around 20,000 employees.
Most of the layoffs were done in high-profile corporate positions. The key reason behind these layoffss due to AI implementation in different business levels. For example, warehouses becoming increasingly automated means people employed there have no job to do.
AI was cited as the primary reason for almost 7% of the total cut. The report stated that it is tough to measure the impact of AI on layoffs. But business leaders are discussing AI, and many organizations are striving to implement it in their operations.
The workplace expert, Andy Challenger, further added that generally, such a high number of job cuts are done in the first quarter, and it is a high total for January.
It means that employers have planned this for the end of 2025. It also demonstrates that employers are not positive about the future outlook of 2026.
As said by the chief economist of Navy Federal Credit Union, Heather Long, the uncertainty in the market is increasing because of sweeping policies by the Trump government, mainly in tariffs and the immigration segment. Instead of getting new team members, companies are more interested in investing their money in the latest technologies like artificial intelligence.
As of now, the job market is steady on paper only. But under the carpet, employers’ behavior and decisions showcase that things have shifted. Decisions made by the companies last are now presenting the result, which shows an increasing unease about what is going to happen in 2026.
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