Global advisor to CEOs and boards of directors Ram Charan joins Mornings with Maria to discuss the growth of AI in US companies and the impact of technology on jobs.
American employers announced job losses rose in the month of January, reaching the highest level since 2009, a new report shows.
Global outplacement and executive coaching firm Challenger, Gray & Christmas found that employers had announced 108,435 job cuts in January – an increase from the 49,795 job cuts announced in the same month last year. Job losses are up 205% from December, when 35,553 layoffs were announced.
In January the most layoffs this month since 2009, when 241,749 cuts were announced. It was also the highest monthly total since October 2025, when there were 153,074 layoffs.
“We generally see a large number of job losses in the first quarter, but this is a high total for January. It means that most of these plans have been set by the end of 2025, indicating that employers are not particularly optimistic about the 2026 outlook,” said Andy Challenger, workplace expert and Chief Revenue Officer at Challenger, Gray & Christmas.
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The increase in layoffs in January was caused by announced job losses at UPS and Amazon. (Lindsey Nicholson/UCG/Universal Images Group)
The transport sector saw the highest number of job losses in January, with 31,243 jobs announced, most of which came from logistics giant UPS it announces 30,000 cuts as it scales back shipment handling for Amazon.
Technology companies announced 22,291 cuts in January, most of which came from Amazon, which announced 16,000 cuts as it reorganized its management structure.
“[Amazon] CEO Andy Jassyhas said, like many CEOs recently, that AI will cost jobs in the coming years, but this cut appears to be more due to over-hiring and layer reduction than the new technology,” Challenger said.
UPS is cutting another 30,000 jobs as part of a turnaround plan
UPS announced 30,000 job cuts as it scales back its business with Amazon. (Kevin Carter)
Healthcare companies and healthcare products makers announced 17,107 job cuts in January, the highest number for the sector since April 2020, when 19,453 job losses were recorded.
“Health care providers and hospital systems are struggling with inflation and high labor costs. Lower reimbursements from Medicaid and Medicare are also impacting hospital systems. These pressures are leading to job losses and other cuts, such as certain wages and benefits,” Challenger said.
Chemical manufacturers announced 4,701 cuts in January, mainly driven by an announcement at Dow amid an AI and automation shift.
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Amazon announced 16,000 layoffs during a restructuring. (Matthias Balk/photo alliance via Getty Images / Getty Images)
The top reasons why companies announced layoffs in January were contract losses, which were cited in connection with 30,784 cuts, while market and economic conditions followed by 28,392 cuts.
Other reasons included restructuring (20,044 cuts), closures (12,738) and artificial intelligence (7,624).
Noting that it’s hard to say how much impact AI will have on layoffs, Challenger said: “We know leaders are talking about AI, many companies are looking to implement it into their operations, and the market seems to reward companies that mention it.”
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The report also shows that employers announced 5,306 hiring plans in January, the lowest number for the month since Challenger began tracking this metric in 2009.
That figure is down from the 6,089 hiring plans announced in the same month last year, and also down from the 10,496 announced in December.
