Planned layoffs surged to their highest level for January since the Great Recession, despite President Trump’s repeated claims that the economy is thriving. According to new data released Thursday by outplacement firm Challenger, Grey & Christmas, U.S. employers announced 108,435 job cuts in January.
That total marks the highest number of January layoff announcements since 2009. The figure also shows a sharp jump from the previous month, rising 205 per cent from December 2025 and 118 per cent from January 2025.
The company’s workplace expert, Andy Challenger, said the increase stands out even for a time of year when layoffs are usually common. “Generally, we see a high number of job cuts in the first quarter, but this is a high total for January,” Challenger said.
He added, “It means most of these plans were set at the end of 2025, signaling employers are less-than-optimistic about the outlook for 2026.” Several major industries were responsible for the spike. The transport sector led all categories, with 31,243 planned job cuts. Much of that number was tied to UPS, which recently announced it would lay off 30,000 employees.
Technology was another major driver. Reuters reported that the industry saw 22,291 planned job cuts, with Amazon accounting for the majority. The company is reportedly preparing to eliminate 16,000 roles.
Hiring numbers offered little reassurance. CNBC reported that only 5,306 new hires were announced in January, highlighting a sluggish start to the year for job growth. While the tech world has been heavily focused on artificial intelligence and its impact on the workforce, Challenger suggested AI may not be the main factor behind Amazon’s decision.
He said that Amazon “CEO Andy Jassy, like many CEOs recently, has said AI will cost jobs in the coming years, but this cut appears to be due more to overhiring and reducing layers than to the new technology.”
Healthcare was the third-largest sector affected, with 17,107 job cuts announced. Challenger noted that this is the largest monthly reduction in healthcare employment since April 2020.
“Healthcare providers and hospital systems are grappling with inflation and high labor costs,” Challenger said. “Lower reimbursements from Medicaid and Medicare are also hitting hospital systems. These pressures are leading to job cuts and other cost-cutting measures, including reductions in pay and benefits.
It’s very difficult for leaders of these companies to tighten budgets while not sacrificing patient care.” The White House pushed back against concerns. Spokesperson Kush Desai said, “President Trump’s economic agenda of tax cuts, deregulation, tariffs, and energy abundance has a proven track record of success. These same policies created a historic economy in his first term.
As trillions of investments continue pouring in to make and hire in America, and as GDP growth continues to accelerate, Americans can rest assured that the best is yet to come.” Trump has continued to promote the strength of the economy, recently calling it the “greatest first year in history.”
In a Wall Street Journal op-ed published Friday, he also defended tariffs, saying they had “created an American economic miracle, and we are quickly building the greatest economy in the history of the world, with other countries doing just fine!”
Still, skepticism remains. GOP strategist Karl Rove criticized Trump on Fox News Sunday, accusing him of “making the same mistake” as Joe Biden by insisting people are doing better financially than they feel, according to The Hill.
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