Worst January Layoffs Since 2009: Are Companies Already Writing Off 2026?

108,435 people lost their jobs in January. That's the highest January layoff count since the 2009 financial crisis, and it's sending shockwaves through an already jittery economy.

But here's the real kicker: companies hired just 5,306 people during the same period. That's the lowest hiring number since Challenger, Gray & Christmas started tracking this data in 2009. We're witnessing a perfect storm of mass layoffs paired with hiring freezes.

The Amazon-UPS Double Whammy

Nearly half of all job cuts came from just two companies. UPS announced plans to lay off 31,243 workers, largely due to the end of its lucrative contract with Amazon. Meanwhile, Amazon itself is cutting 16,000 jobs as it continues to unwind its pandemic-era hiring spree.

The irony is striking: Amazon's decision to bring more logistics in-house is directly causing UPS layoffs, while Amazon simultaneously cuts its own workforce. It's a brutal reminder of how corporate strategy shifts can ripple through entire industries, leaving workers caught in the crossfire.

But the most surprising sector hit? Healthcare. Hospitals and healthcare companies announced 17,107 job cuts last month – the most since April 2020, right at the height of the pandemic.

When Even Hospitals Can't Afford Staff

"Healthcare providers and hospital systems are grappling with inflation and high labor costs," explains Andy Challenger, workplace expert at Challenger, Gray & Christmas. "Lower reimbursements from Medicaid and Medicare are also hitting hospital systems."

This reveals a troubling paradox in American healthcare. While demand for medical services continues to grow with an aging population, hospitals are cutting staff because they can't afford to pay them. It's a symptom of a healthcare system under severe financial strain, where rising costs meet declining government reimbursements.

The result? Patients face longer wait times and potentially reduced care quality, while healthcare workers face job insecurity in what should be a growth industry.

Companies Have Already Given Up on 2026

"Generally, we see a high number of job cuts in the first quarter, but this is a high total for January," Challenger notes. "It means most of these plans were set at the end of 2025, signaling employers are less-than-optimistic about the outlook for 2026."

That's perhaps the most concerning aspect of this data. Companies typically announce layoffs in Q1, but this level suggests they've already written off much of 2026. The 118% increase over January 2025 and the doubling of December's layoffs shows this isn't just seasonal adjustment – it's strategic pessimism.

The timing couldn't be worse for getting a clear picture of the job market. The recent government shutdown has delayed the Bureau of Labor Statistics' monthly jobs report until next Wednesday, leaving investors and policymakers relying on private data that paints an increasingly grim picture.

The Ripple Effects Are Just Beginning

These layoffs will create a cascading effect throughout the economy. Unemployed workers cut spending, which hurts retailers and service providers. Reduced consumer confidence leads to further business caution, potentially creating a self-fulfilling prophecy of economic slowdown.

For workers still employed, the message is clear: job security is increasingly fragile, even in traditionally stable sectors like healthcare. The combination of high layoffs and minimal hiring suggests companies are hoarding cash and preparing for rougher times ahead.