New Jobs Report Shows 108,435 Jobs Cut in January

A new January report from Challenger, Gray & Christmas showed US-based employers cut 108,435 jobs in January, an increase of 118% from January 2025.

The Details: The total job cuts is the highest for January since 2009–when 241,749 jobs were lost–and the highest monthly total since October 2025, which cut 153,074 jobs. The industries most impacted were transportation (31,243 jobs cut), followed by technology (22,291) and healthcare companies and health product manufacturers (17,107). According to the report, the cuts were caused primarily by contract losses (30,784), market and economic conditions (28,392), restructuring (20,044), department closings (12,738), artificial intelligence (7,624) and tariffs (294). Also in January, employers announced 5,306 hiring plans–the lowest since 2009.

Key Quotes: Andy Challenger, Chief Revenue Officer for Challenger, Gray & Christmas said, "This is a high total for January. It means most of these plans were set at the end of 2025, signaling employers are less-than-optimistic about the outlook for 2026."

Other Layoffs: Over 100 large companies including Amazon, Nike, Pinterest, UPS and Dow Inc. have announced mass layoffs within the last month. In January, Amazon announced 16,000 corporate layoffs in January, its second round of mass layoffs since 14,000 in October. Citibank, Pinterest and Meta have also announced they'll cut their workforces by roughly 10% and 15% in 2026.

From the Left & Center: Fast Company (Lean Left bias) countered the narrative of AI taking jobs by emphasizing the role of current economic conditions and federal funding cuts. It cited experts who said AI "could be being used as a mere scapegoat" but noted other experts believe AI's toll on the job market will be "crushing." Straight Arrow News (Center) included a survey that 64% of Americans believe the US is heading toward a recession. It also noted delays in the federal government releasing labor data since October and that job additions in December were lower than economists' predictions. 

From the Right: Epoch Times (Lean Right) and Fox Business (Lean Right) both noted plans to hire were low among companies and also the light impact of President Trump's tariffs. One Breitbart (Right) article emphasized the picture created by the report "is far less dire than headlines suggest" as "actual unemployment claims told a markedly different story."

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