Why US Layoffs Hit a 17-Year High — And What It Means for Your Career

Nakiya Parkes
2 days ago
3 min read

New data shows that layoffs in the United States surged in January to levels not seen since January 2009, during the Great Recession. Employers announced 108,435 job cuts last month — more than double the total from January 2025 and the highest January tally in 17 years.

This surge isn’t isolated — it’s part of a broader trend that began in 2025, when over 1.1 million workers in the US lost their jobs from mass layoffs.

At the same time, hiring activity has stalled. In January, employers announced just 5,306 hiring plans — the weakest start to the year since this data has been tracked.

Together, these figures paint a labor market that’s softening at the start of 2026, with more layoffs and less hiring, signaling employer caution about the year ahead.

Why Are Layoffs So High?

Several factors appear to be driving the January layoffs:

1. Contract and Business Losses

A large portion of cuts came from contract terminations and shifts in business strategy. For example, UPS announced up to 30,000 job reductions as it winds down delivery services tied to Amazon.

2. Restructuring Across Industries

Companies are reorganizing to reduce costs or refocus operations. Amazon alone announced 16,000 corporate layoffs, largely tied to corporate restructuring.

3. Broader Economic Uncertainty

With inflation, global competition, and consumer sentiment below levels seen in prior expansions, some employers are cautious about future growth — leading to more cuts rather than new hiring.

What This Signals for the Job Market

Here’s how this surge in layoffs affects career seekers and professionals right now:

✔ The Job Market Isn’t “Booming Yet”

Even with some sectors growing, the start of 2026 shows a mismatch: more cuts than new roles. That means job hunters are competing for fewer openings.

✔ It’s Getting Competitive — Especially Early in the Year

January is typically a slower hiring month, but these figures show an unusually steep drop in new opportunities.

✔ Certain Industries Are More Exposed

Transportation and tech — including major employers like UPS and Amazon — accounted for many of the cuts.

✔ Employers May Be Setting Expectations for 2026

Challenger, Gray & Christmas reported that many of the layoffs announced in January were planned at the end of 2025 — suggesting companies are less optimistic about growth this year.

What This Means for Your Career Strategy

In a market with rising layoffs and slowing hiring, strategy matters more than ever. Here are a few key takeaways:

Don’t Rely on Volume Applications

When opportunities are limited, mass applying won’t be as effective. Tailored, strategic approaches work better.

Broaden Your Market Visibility

Networking, personal branding, and positioning can help you access roles that never make it to public job boards.

Focus on Transferable Skills

Skills that apply across sectors boost your adaptability if your industry contracts.

Clarify Your Career Direction

This isn’t a time to be passive. Define your goals, identify high-value roles, and align your search with them.

The Larger Career Lesson

This January’s layoff surge reinforces an important reality: the labor market can change rapidly, and job security isn’t guaranteed from one path alone.

Today’s professionals need a career strategy that helps them: