U.S. employers cut more than 108,000 jobs in January, marking the worst start to a year since the 2009 financial crisis. Layoffs jumped 205 percent from December and 118 percent from a year earlier, signaling that companies entered 2026 with growing economic anxiety.

At the same time, hiring plans collapsed. Employers announced just over 5,300 new positions, the lowest January total ever recorded by Challenger, Gray & Christmas, and nearly half the level seen in December. The data suggests businesses are shifting quickly from expansion to defense.

Artificial intelligence is playing a visible role in the cuts. About 7,600 layoffs in January were directly attributed to AI, representing roughly 7 percent of all job losses. Since tracking began in 2023, AI has been cited in nearly 80,000 cuts as companies automate workflows and flatten management layers.

Several large employers led the wave. Dow announced more than 4,700 layoffs tied to AI driven automation, while the transportation sector shed over 31,000 jobs, largely from UPS after its separation from Amazon. Amazon also cut 16,000 roles as part of a broader restructuring.

Healthcare was another pressure point, with more than 17,000 cuts as hospitals grappled with higher costs and lower reimbursements. Beyond AI, companies cited contract losses, economic uncertainty, and restructuring as the most common drivers.

The message from January is clear. Corporate America is preparing for a leaner 2026, prioritizing efficiency and resilience over growth.