The US job market is facing a cold winter! Layoffs in January surged by 118%, reaching a new high for the same period since the Great Recession in 2009.

According to data from the reemployment firm Challenger, Gray & Christmas Inc., the number of layoffs announced by U.S. companies in January reached the highest level since the depths of the Great Recession in 2009. Last month, companies announced 108,435 job cuts, a 118% increase compared to the same period last year. A report released on Thursday also showed that hiring intentions declined by 13% year-on-year, dropping to 5,306 - the weakest January hiring data the firm has recorded since 2009. January saw the highest number of layoff announcements since 2009 The company's Chief Revenue Officer Andy Challenger said, "Typically we see a lot of layoffs in the first quarter but this total for January is really high. It suggests most of these plans were made towards the end of 2025, signaling employers are not optimistic about the outlook for 2026." The report shows that contract losses, economic conditions, and restructuring were the three major reasons for the layoffs announced last month. Nearly half of the layoffs announced in January were related to three companies - Amazon.com, Inc., United Parcel Service (UPS), and Dow, Inc. Amazon.com, Inc. announced plans to cut 16,000 corporate jobs in a restructuring effort, while UPS said it would lay off up to 30,000 employees. Chemical manufacturer Dow, Inc. plans to cut approximately 4,500 positions, while Peloton Interactive Inc. and NIKE, Inc. Class B also announced layoff plans. These data further confirm signs of fragility in the labor market - characterized by limited overall job cuts but weak hiring - which is unsettling for consumers. Meanwhile, policymakers at the Federal Reserve insist that the unemployment rate is showing "some signs of stabilization."