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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsU.S.-based employers announced 108,435 job cuts in January 2026, according to Challenger, Gray & Christmas. That was 118% more than in January 2025 and 205% more than in December 2025; Challenger said it was the highest January total since 2009. The figure counts announced plans—not 108,435 workers confirmed to have lost their jobs during January.
What the January job-cut figure measures
Challenger, Gray & Christmas compiles employer announcements of planned job cuts. The announcements can be carried out over time, revised, or not translate one-for-one into immediate payroll losses. The 108,435 figure is therefore not a government count of separations completed in January.
Federal Reserve Governor Christopher J. Waller described Challenger’s source as a “less scientific survey of layoff announcements.” He also called the total the most since October and the worst January for job cuts since 2009. Those are Waller’s characterizations of an announcement series, not formal Bureau of Labor Statistics (BLS) measurements.
Why employers said they were cutting jobs
Contract losses were the largest stated reason in Challenger’s January report, followed by market and economic conditions, restructuring, and closings.
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| Employer-stated reason | Announced cuts |
|---|---|
| Contract loss | 30,784 |
| Market and economic conditions | 28,392 |
| Restructuring | 20,044 |
| Store, unit, or department closings | 12,738 |
| Artificial intelligence (AI) | 7,624 (7% of the announced total) |
The AI number reflects employers’ stated reason category, not an independent estimate that AI caused that many layoffs. Challenger cautioned that “it’s difficult to say how big an impact AI is having on layoffs specifically.” Tariffs were cited for 294 January cuts, far fewer than the counts assigned to the leading categories.
Industries with large announced totals
In its January year-to-date table, Challenger listed transportation with 31,243 cuts, technology with 22,291, and health care/products with 17,107. These are announcement counts, not a measure of net employment change in each industry.
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Why this can coincide with BLS job gains
The BLS January Employment Situation reported that payroll employment rose by 130,000 and the unemployment rate was 4.3%. Those figures can coexist with a high number of announced cuts: payroll change is a net employment measure, while Challenger counts employer announcements. Hiring and job growth elsewhere can offset some separations, and announcements need not take effect immediately.
The BLS release also noted that January establishment-survey data had been benchmarked to comprehensive March 2025 payroll counts. That benchmark is relevant when interpreting official estimates, but it does not turn Challenger’s separate announcement count into a comparable payroll statistic.
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JOLTS layoffs and discharges are a different measure
BLS Job Openings and Labor Turnover Survey (JOLTS) data put January layoffs and discharges at 1.6 million, with a rate of 1.0%; both were little changed. JOLTS counts involuntary separations initiated by employers during the month. It is an economy-wide monthly flow of realized events, based on a government statistical survey, whereas Challenger collects announced plans.
Do not subtract the 108,435 Challenger announcements from the 1.6 million JOLTS total or treat the numbers as competing estimates of the same group of workers. Their definitions, populations, timing, and methods differ.
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Hiring plans also weakened
Challenger counted 5,306 hiring plans for January, compared with 6,089 in January 2025 and 10,496 in December 2025. The firm described January’s figure as the lowest for that month since it began tracking hiring plans in 2009. It was down 13% year over year and 49% from December. These are announced plans, not completed hires.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What workers and households should take from the report
The unusually high announcement count, coupled with fewer announced hiring plans, is a warning signal worth watching. It is not, by itself, proof that the U.S. labor market broadly contracted or that 108,435 people became unemployed in January. Waller noted that payroll gains were concentrated in health care and social assistance and construction, while early estimates, other private estimates, and layoff announcements did not present a uniform picture. For personal finances, the practical distinction is whether a specific employer’s announcement affects your work—not treating the national announcement total as a count of completed job losses.
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