Hiring Plans CRASH To Record Low

Red stamp with the text 'NO JOB' — NO MORE HIRING PLANS

January’s layoff surge—paired with record-low hiring plans—signals the kind of economic hangover working Americans remember all too well from 2009.

Story Snapshot

U.S. employers announced 108,435 job cuts in January 2026, the highest January total since 2009, according to Challenger, Gray & Christmas.
Planned hiring fell to just 5,306 in January, the lowest January figure since Challenger began tracking hiring plans in 2009.
Transportation led all sectors in cuts, mainly driven by UPS layoffs tied to the end of its Amazon contract.
Technology and healthcare also posted major reductions, with restructuring and cost pressures cited more than “AI replacement” narratives.

January 2026 layoffs jump as hiring intentions hit a record low

Challenger, Gray & Christmas reported that U.S.-based employers announced 108,435 job cuts in January 2026, a sharp increase from 49,795 cuts in January 2025.

Challenger’s data also showed hiring plans of only 5,306 for the month—its lowest January hiring figure since the firm began tracking hiring announcements in 2009. The report frames the surge as a start-of-year reset that looks unusually harsh compared with recent years.

Layoffs in January were the highest to start a year since 2009, Challenger says https://t.co/H0IYPpdUPx

— CNBC (@CNBC) February 5, 2026

Challenger’s commentary tied the spike to decisions made at the end of 2025, when many employers set workforce plans for the year ahead. That timing matters because it suggests companies entered 2026 with caution already baked into budgets and staffing models.

December 2025 had only 35,553 announced cuts, but January jumped dramatically month-to-month, indicating that the calmer December reading did not represent a lasting improvement in the labor market.

Transportation layoffs lead the month after the UPS-Amazon split

Transportation posted the largest sector total for January, with 31,243 cuts. The report and related coverage highlight UPS as a major driver after it ended its contract with Amazon, with roughly 30,000 cuts associated with that shift.

For workers and communities tied to logistics hubs, contract-driven layoffs can be especially jarring because they aren’t gradual; when a large account goes away, payroll reductions often follow quickly as routes, shifts, and facilities are rebalanced.

Technology was also a significant contributor, with 22,291 cuts reported for January. Coverage cited Amazon as a notable example, with layoffs linked to management restructuring and “reducing layers,” rather than a clean story of machines replacing humans overnight.

That distinction matters for understanding the current economy: many of these announcements read like corporate attempts to correct earlier overhiring and reorganize operations under tighter financial expectations, rather than a single disruptive cause that policymakers can easily “fix” with a slogan.

Healthcare and inflation pressures collide with reimbursement realities

Healthcare announced 17,107 job cuts in January, the highest level since April 2020, according to Challenger. The report connects the strain to inflation and reimbursement pressures, an uncomfortable mix for families who depend on steady local hospital systems as major employers.

When providers cut staffing, it can ripple beyond payroll, affecting service lines, scheduling, and wait times, especially in regions where a single hospital network anchors the middle-class economy.

Challenger’s breakdown of reasons also points to economic conditions and restructuring as major categories behind January announcements. The report lists contract losses as a leading factor, along with “market/economic conditions” and internal reorganizations.

It also notes that tariffs were tied to only a small number of layoffs in January compared with the prior year. In plain terms, the data emphasizes bread-and-butter business pressures—demand, contracts, costs, and corporate structure—more than political talking points.

What the early-2026 signals mean for working families and policy debates

Challenger’s leadership suggested the high January total reflects a “less-than-optimistic” outlook for 2026 because many plans were set late last year. That doesn’t prove a recession is here, but it does provide a measurable warning: layoffs rose while hiring intentions hit a record January low.

For a conservative audience that watched years of overspending and inflation squeeze paychecks, this is the kind of indicator that reinforces why stable money, predictable rules, and pro-growth policies matter.

The report also undercuts a simplistic “AI did it” explanation. Challenger’s analysis says AI’s impact is difficult to quantify and that restructuring and business conditions appear more central to the current wave.

Employers may still talk up AI because markets reward the narrative. Still, the announced cuts in January were concentrated in sectors and circumstances that more closely resemble contract churn, post-pandemic corrections, and cost management. The next few reports will matter because sustained low hiring plans can be as important as layoff totals.