Largest Wave of Job Cuts in 17 Years Shakes the US Market

Recent data shows that layoffs in the United States reached an alarmingly high level in January 2025, reflecting serious concerns among employers about the economic outlook for 2026. According to a report from employment consulting firm Challenger, Gray & Christmas, the momentum of workforce reductions has reached levels not seen since the post-2009 global crisis recovery.

Transportation Sector Hit Hardest by Massive Layoffs

The transportation industry leads the wave of layoffs with the largest declines. The most notable layoff plans come from United Parcel Service, which announced a reduction of 31,243 jobs. This figure alone demonstrates how serious the challenges are facing the logistics and delivery sector amid uncertain business demand.

According to Andy Challenger, Chief Revenue Officer at Challenger, Gray & Christmas, the January data is very concerning because layoffs tend to be higher in the first quarter of the year. However, the reported numbers this time far exceed the historical average for that month. Overall, layoff plans surged 118% year-over-year, affecting 108,435 employees—an all-time high for January since 2009.

Workforce Reduction Plans Formulated at the End of 2025, Signaling Industry Pessimism

A key point revealed by Challenger is that most of these layoff plans were actually developed at the end of 2025. These are not decisions made based on current market conditions but rather reflections of the pessimism that has taken hold among employers when projecting business performance for 2026. This indicates a low level of confidence within the US business ecosystem.

Technology and Healthcare Industries Follow the Trend of Workforce Reductions

The technology sector announced 22,291 layoff plans, with major cuts from Amazon, which plans to reduce 16,000 jobs. At the same time, the healthcare industry is also experiencing significant pressure, largely due to reductions in workforce replacement programs from federal Medicaid and Medicare insurance schemes.

The pattern of layoffs across several strategic sectors indicates that economic concerns are not limited to a single industry but are a systemic symptom of a broader pessimistic outlook on economic growth for the coming year.