US Employers Slash 108,435 Jobs; Report Flags AI Impact on Layoffs
Washington: US employers announced 108,435 job cuts in January, a sharp rise of 118% from the 49,795 reported a year earlier and 205% higher than December 2025, according to a report by Challenger, Gray & Christmas. The figure marks the highest January total since 2009 and the largest monthly tally since October 2025.
Andy Challenger, the firm’s workplace expert, said while layoffs typically rise early in the year, the elevated numbers suggest companies entered 2026 with cautious outlooks, with many workforce reduction plans set late last year.
By sector, transportation led with 31,243 cuts — largely due to UPS announcing about 30,000 layoffs after ending its partnership with Amazon. Technology followed with 22,291 cuts, attributed mainly to overhiring and restructuring rather than immediate technological disruption.
Artificial Intelligence was cited in 7,624 layoffs, accounting for about 7% of the total. Companies linked 54,836 job cuts to AI in 2025, and since tracking began in 2023, the technology has been referenced in nearly 79,500 layoffs — around 3% of overall reductions.
The report noted that while AI is frequently mentioned in corporate planning, measuring its direct impact remains difficult as firms continue integrating the technology into operations.
