Layoffs hit their worst January levels since 2009, Challenger says

Layoff plans hit their highest January total since the global financial crisis while hiring intentions reached their lowest since the same period, outplacement firm Challenger, Gray & Christmas reported Thursday.

U.S. employers announced 108,435 layoffs for the month, up 118% from the same period a year ago and 205% from December 2025. The total marked the highest for any January since 2009, while the economy was in the final months of its steepest downturn since the Great Depression.

At the same time, companies announced just 5,306 new hires, also the lowest January since 2009, which is when Challenger began tracking such data. The crisis recession officially ended in March 2009.

With the recent narrative centering on a no-hire no-fire labor market, the Challenger data suggests that the layoff part of the equation could be stepping up.

“Generally, we see a high number of job cuts in the first quarter, but this is a high total for January,” said Andy Challenger, workplace expert and chief revenue officer for the firm. “It means most of these plans were set at the end of 2025, signaling employers are less-than-optimistic about the outlook for 2026.”

To be sure, if employers are stepping up plans to furlough workers, it isn’t showing up in official government data.

Initial jobless claims for the week ended Jan. 24 totaled just 209,000, with the longer-term trend running near its lowest level in two years.

However, some high-profile layoff announcements have countered that trend. Amazon, UPS and Dow Inc. recently have announced sizeable job cuts. Indeed, transportation had the highest level from a sector standpoint in January, due largely to plans from UPS to cut more than 30,000 workers. Technology was second on the back of Amazon’s announcement to shed 16,000 mostly corporate-level jobs.

Planned hiring dropped 13% from January 2025 and was off 49% from December.

Challenger data also can be volatile and not correlated to official statistics. However, filings with the Labor Department in January under Worker Adjustment and Retraining Notification regulations indicate more than 100 companies have given notice of significant layoffs.