Layoffs jumped in January as companies pull back on hiring

February 6, 2026

TL;DR

U.S. layoffs in January surged to 108,435, an 118% increase from the previous year and the highest for the month since 2009.
The transportation, technology, and health care sectors reported the highest number of job cuts.
Companies cited losing commercial contracts, stock market and economic conditions, and restructuring as top reasons for layoffs.
Amazon and UPS announced significant workforce reductions, contributing to the January surge.
Some companies attributed layoffs partly to AI adoption, with nearly 8,000 layoffs directly citing AI, though experts question its extent as a cause.
The unemployment rate remains low at 4.4%, but job openings are falling and initial jobless claims have risen.
Revelio Labs reported a 64% increase in workers receiving layoff notices between December 2025 and January.

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