The US labor market is flashing warning signs — and they’re getting harder to ignore.
In just the opening weeks of January 2026, some of America’s biggest companies have announced fresh waves of layoffs, adding to a year already marked by deep job cuts and growing anxiety about where the economy is headed next.
From Big Tech to logistics and consumer brands, the message is increasingly consistent: cost-cutting is back, and caution is rising.
🏢 Amazon, Pinterest Lead a New Wave of Job Cuts
The most eye-catching move came from Amazon, which confirmed on Wednesday that it will cut roughly 16,000 corporate roles. The announcement follows the elimination of around 14,000 positions in October, bringing the tech giant’s recent job cuts to a staggering total.
In a blog post, Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology, said the reductions are part of a broader effort to streamline the organization.
“We are strengthening our organization by reducing layers, increasing ownership, and removing bureaucracy,” Galetti wrote.
The layoffs come as Amazon continues to double down on artificial intelligence, redirecting resources toward automation and AI-driven initiatives.
Pinterest quickly followed. On January 27, the social media platform announced plans to cut less than 15% of its workforce and significantly reduce office space. The company said the restructuring supports its AI-focused priorities, with the process expected to conclude by September 30, according to a regulatory filing.
📦 UPS, Nike Join the Cost-Cutting Push
The trend extends well beyond tech.
United Parcel Service (UPS) said it plans to eliminate up to 30,000 operational roles over the course of the year.
Nike is also trimming staff, with 775 employees set to be laid off as the company looks to boost profitability and expand its use of automation technologies, according to CNBC.
Together, these moves underscore how AI adoption, efficiency drives, and slowing demand are reshaping corporate workforce strategies across sectors.
📉 Layoffs Hit Levels Usually Seen Only in Recessions
While layoffs often pick up in the first quarter as companies reassess budgets, the scale and persistence of the current wave are alarming.
According to Global Markets Investor, US layoffs surged 58% in 2025, pushing total job losses to around 1.2 million — the highest level since the pandemic shock of 2020.
Excluding that extraordinary period, 2025 now ranks as the worst year for layoffs since the 2008 financial crisis.
“Historically, such elevated layoff announcements have only appeared during recessions,”
Global Markets Investor noted, pointing to 2001, 2008–2009, and 2020 as comparable periods.
⏳ Job Seekers Face Longer Waits and Fewer Options
The stress isn’t limited to headline layoffs.
The average unemployed worker now takes 11 weeks to find a new job — the longest stretch since 2021.
The perceived probability of finding a job fell to 43.1% in December 2025, down 4.2% year over year, hitting a new low.
Meanwhile, Charlie Bilello, Chief Market Strategist at Creative Planning, highlighted another troubling signal:
“The US lost an average of 22,000 jobs per month over the last three months. This has happened only 11 times since 1950 — and every single time, the US economy was in a recession.”
Henrik Zeberg, Head Macro Economist at Swissblock, echoed the concern, drawing parallels to the pre-crisis period of 2007.
“We are in the Twilight Zone — just like Q3 2007. Observe the labor market, and you will have clarity,” he warned.
🪙 What This Means for Crypto and Risk Assets
A weakening labor market rarely favors speculative investments.
As recession fears grow, investors tend to rotate toward defensive assets, reducing exposure to high-volatility plays like cryptocurrencies. That shift is already underway: gold and other precious metals have surged, while Bitcoin has struggled to gain traction amid macro uncertainty and geopolitical stress.
Softer employment conditions can also slow income growth and consumer spending, adding another headwind for risk assets.
However, there’s a flip side.
Some market participants argue that prolonged economic stress often leads to monetary easing. Lower interest rates, renewed liquidity injections, or stimulus measures during a downturn could eventually improve conditions for crypto — positioning digital assets to benefit once risk appetite returns.
🔮 A Market at a Crossroads
For now, the signal from the labor market is clear: corporate America is bracing for tougher times.
Whether the economy tips fully into recession — and how policymakers respond — could shape not just jobs and growth, but also the future path of stocks, crypto, and global markets in the months ahead.