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According to a recent report by Challenger, Gray & Christmas, January witnessed the largest spike in job reductions by U.S. employers since 2009. The data highlights an unsettling trend, with the number of job cuts soaring to 108,435—an alarming 205% rise compared to December.
The report attributes these layoffs to various factors, including contract losses, unfavorable market and economic conditions, and organizational restructuring. Andy Challenger, a workplace expert and the chief revenue officer at Challenger, Gray & Christmas, commented on the findings, noting, “While job cuts are typically high in the first quarter, this is an unusually large figure for January. It indicates that many of these decisions were likely made towards the end of 2025, reflecting a cautious outlook for 2026.”
Among the hardest-hit sectors was transportation, which saw 31,243 jobs slashed, primarily due to UPS’s decision to curtail its delivery volume for Amazon. Additionally, Amazon itself announced the layoff of 16,000 employees as part of its management restructuring efforts. In the technology industry, a total of 22,291 positions were eliminated.
The transportation industry faced the most cuts with 31,243 positions severed. A majority of those losses resulted from UPS’s agreement to reduce the number of packages it delivers for Amazon.
Amazon itself cut 16,000 positions in an attempt to restructure management. A total of 22,291 jobs were cut in the technology sector.
Healthcare companies saw 17,107 job cuts in the first month of the year, reflecting the largest decrease in jobs in six years.
“Healthcare providers and hospital systems are grappling with inflation and high labor costs. Lower reimbursements from Medicaid and Medicare are also hitting hospital systems,” Challenger said.
“These pressures are leading to job cuts, as well as other cutting measures, such as some pay and benefits,” he added.
Tariffs were credited for 294 job cuts in January.
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