Americans worried about job security have been getting mixed messages so far this year. With so much job uncertainty in the air, it’s important to be prepared. Here’s a closer look at the current state of layoffs, as well as the one money move everyone should make as layoffs increase. Layoffs in the US The latest Labor Department data revealed better-than-expected job growth in January, but a separate report from ADP found that January was a “lackluster” month for hiring. The one thing for certain is t ...

Core Insights - US layoffs reached a 17-year high in January, with 108,435 job cuts announced, marking a 118% increase from the previous year [1][2] Group 1: Job Cuts Data - The total number of job cuts in January is significantly high, indicating a concerning trend for the labor market [2] - Major companies like Amazon and Citi are among those reducing their workforce this year [1] Group 2: Employer Sentiment - The high number of layoffs suggests that many of these plans were established at the end of 2025, reflecting a pessimistic outlook for 2026 among employers [2]

Group 1 - The job market in 2025 was particularly challenging for unemployed Americans, with economists and job seekers noting significant difficulties [1] - Applicants faced numerous obstacles, including 'ghosting' by recruiters, a competitive job pool, age discrimination, and AI screening of résumés [2] - Hiring rates in 2025 were the weakest since 2003 outside of recession years, with only 50,000 new jobs added in December, falling short of expectations [4] Group 2 - Concerns about job security were prevalent, with 55% of Americans worried about potential layoffs, reflecting a surge in layoffs totaling over 1.2 million, a 58% increase from 2024 [5] - Major companies, particularly in the technology sector, experienced significant workforce reductions, with firms like Microsoft, Amazon, and Verizon laying off large numbers of employees [6] - Business uncertainty was heightened due to fluctuating trade policies and tariffs imposed by the Trump administration, leading to hesitance in hiring [6]

Core Viewpoint - Amazon is implementing a second round of layoffs, cutting 16,000 corporate roles, affecting employees in the US, UK, and India [1][3] Group 1: Layoff Details - The layoffs include teams from Amazon Web Services, such as the AI cloud service Bedrock and the cloud data warehouse service Redshift, as well as retail business teams like the Prime subscription service [2] - Affected employees primarily hold software engineering roles and have been seeking job leads through internal channels [2] Group 2: Employee Support and Company Size - Amazon is providing most US-based employees with 90 days to find new internal roles, with support including severance and health insurance benefits for those who do not find new positions [3] - This round of layoffs follows a previous cut of 14,000 roles in October, with Amazon employing over 1.5 million people globally, of which approximately 350,000 are in corporate roles [3]

Core Insights - Amazon is laying off an additional 16,000 employees, bringing the total layoffs to 30,000 over the past four months [1][2] - The layoffs are part of a strategy to strengthen the organization by reducing layers, increasing ownership, and removing bureaucracy [1] - A miscommunication occurred when an email was accidentally sent to the AWS team a day early, informing them of the layoffs [3] Layoff Details - The latest round of layoffs will affect various teams, including Prime Video, Amazon Web Services (AWS), retail, and HR [2] - Employees in the U.S. will have 90 days to seek new roles internally, with transition support provided for those unable to find new positions [3] Company Reputation and Response - The GMB trade union criticized Amazon for its handling of the layoffs, stating that the company prioritizes profits over the well-being of workers [4] - Amazon's leadership emphasized that the layoffs are not intended to establish a new pattern of frequent job cuts, but adjustments will continue as necessary [3]

Core Insights - The article discusses the subtle signs that precede layoffs in companies, highlighting a pattern observed by a former HR professional based on personal experiences with layoffs [1][2]. Group 1: Early Warning Signs - Early indicators of potential layoffs typically emerge three to six months in advance, including hiring freezes and vague explanations from management [2]. - Language shifts in company meetings, such as the use of terms like "efficiency" and "rightsizing," signal that management is preparing employees for upcoming changes [2][3]. Group 2: Consultant Involvement - The presence of outside consultants, particularly from firms like McKinsey, Bain, or Deloitte, is a significant warning sign, as they are often tasked with identifying redundancies and justifying cuts [3]. Group 3: Budget Cuts and Employee Development - Companies may begin to cut training budgets, cancel perks, and delay conference approvals, indicating a lack of long-term investment in current employees [3]. Group 4: Personal Indicators - As the timeline narrows to one to three months before layoffs, more personal signs emerge, such as canceled one-on-one meetings and paused cross-functional projects [4]. - Quiet reorganizations that lack operational sense are often a precursor to layoffs, with the reorganization serving as a setup for the eventual layoffs [4].

Core Insights - The number of layoffs is a significant indicator of economic health, and currently, businesses are not cutting many jobs, indicating that the U.S. economy is still expanding [1] Group 1 - Layoffs are a critical measure of economic conditions [1] - Current job cuts are minimal, suggesting stability in the job market [1] - The U.S. economy continues to show signs of expansion despite potential concerns [1]

Group 1 - Employers announced 35,553 layoffs in December, marking the lowest monthly total since July 2024, despite significant job cuts in the fourth quarter [1] - December hiring plans reached 10,496, the highest total for the month since 2022, indicating a positive trend after a year of high job cuts [2] - Planned hires for 2025 were down 34% from 2024, totaling 507,647, the lowest year-to-date total since 2010 [3] Group 2 - Employers announced 1.2 million job cuts in 2025, a 58% increase from 2024's 761,358, representing the highest level since 2020 [4] - The final quarter of 2025 saw 259,948 planned cuts, the worst for that quarter since 2008, with government reductions leading the layoffs [4] - Job openings fell in November, with a hiring rate of only 3.2%, resulting in 1.1 unemployed individuals for every available job, the highest ratio since early 2021 [5]

Core Insights - Recent layoffs in public companies are increasingly linked to benign factors like automation and technological advancements, yet these announcements have led to an average stock decline of 2% instead of the expected increase [2] - Goldman Sachs analysts suggest that the market perceives these layoffs as negative signals regarding companies' future prospects, despite the companies' claims of restructuring [2] - Companies announcing layoffs have shown higher capital expenditures, debt, and interest expenses, alongside lower profit growth compared to industry peers, indicating that layoffs may be driven by more concerning financial pressures [2] Group 1 - Executives from major companies like Amazon and JPMorgan Chase are openly discussing how AI-driven efficiency may reduce workforce needs, with fewer employees becoming a point of pride among Fortune 500 CEOs [3] - The narrative around AI efficiency is prevalent, but there are instances where companies, like Klarna, have reversed hiring freezes to ensure customer service remains human-centric, highlighting a balance between technology and human interaction [3] Group 2 - Goldman Sachs predicts a potential rise in layoffs as companies seek to reduce labor costs through AI, reflecting a shift in investor sentiment towards restructuring-driven layoffs [2] - The trend of executives confidently discussing layoffs and AI's role in workforce reduction contrasts with the reality of financial pressures that may be driving these decisions [2]

Core Insights - The U.S. economy has experienced significant changes since President Trump took office, yet the low level of layoffs remains consistent [1] Economic Changes - The transition from President Biden to President Trump has brought about various economic shifts, but the stability in employment, particularly the low rate of layoffs, has been a notable constant [1]