Family couple
Thousands of American families face uncertain futures as companies focus on cost-cutting and AI over workforce stability. (PHOTO: Vitaly Gariev/Unsplash)

The post-holiday period is proving brutal for American workers, with more than 100 companies filing formal notices to slash jobs this January, raising fresh concerns about employment security as the new year begins.

Major corporations, including Amazon, FedEx, Verizon, McDonald's, Nike, and Wells Fargo, are among those that have submitted Worker Adjustment and Retraining Notification (WARN) notices, signalling imminent mass layoffs that will affect thousands of employees across multiple sectors.

According to data from WARNTracker.com, Amazon alone is set to lay off between 1,001 and 2,500 workers, while FedEx will also be reducing its workforce. The list spans retail giants, healthcare providers, financial institutions, and technology firms, painting a troubling picture for those hoping 2026 would bring economic relief.

What This Means for Workers

Families under pressure from rising prices now face even tougher times. When big companies cut large numbers of jobs, those affected need every day they can get to prepare, as federal rules require firms with 100 or more employees to give warning at least two months in advance.

In the week ending 27 December, 199,000 Americans filed unemployment claims, according to The Associated Press. These figures will remain a key indicator of economic health as the year advances.

The January notices follow a devastating 2025 for American workers. Outplacement firm Challenger, Gray & Christmas reported that US employers announced 1.17 million job cuts through November, a 54% increase from the same period in 2024 and the highest figure since the pandemic forced businesses to shut in 2020.

Which Companies Are Cutting Jobs?

The full list of firms filing WARN notices for January includes household names across nearly every sector. Spirit Airlines, Louis Vuitton, H&M, Nordstrom, Marshalls, Mattel, The Cheesecake Factory, General Motors, and Warner Music Group are all on the list.

Healthcare and pharmaceutical companies are not immune, with Blue Shield of California, Gilead Sciences, and Providence Health & Services announcing reductions. The financial sector is similarly affected, with Wells Fargo, Huntington National Bank, and Colonial Savings also filing notices.

Why Layoffs Keep Coming

Economists point to multiple factors driving ongoing job cuts. HR consultant Bryan Driscoll told Newsweek that the trend reflects shifting corporate priorities.

'This isn't a sign the whole economy's falling apart,' he said. 'It's a sign leadership is more focused on pleasing shareholders than supporting the workers who actually keep the place running.'

Artificial intelligence continues to reshape workforce planning. Amazon cited AI's 'transformative' potential when announcing the elimination of around 14,000 corporate roles. Salesforce also reduced its customer support workforce by 4,000 as AI-powered chatbots took on tasks previously handled by humans.

Aaron Sojourner, senior researcher at the W.E. Upjohn Institute for Employment Research, offered a stark assessment: 'Every sector is at risk for layoffs in 2026. Unemployment is rising, and job growth is slowing broadly across sectors.'

Looking Ahead

Daniel Hamermesh, emeritus professor of economics at the University of Texas at Austin, sees little reason for optimism. He compared current tariff impacts to the 1973 oil crisis, which raised costs and unemployment simultaneously.

'It's not going to improve, not at all,' he told Newsweek, predicting retail and service industries will bear the brunt as consumer spending weakens.

Faced with uncertain prospects, many employees see the January layoffs as proof that stability is further away than ever. With recovery still out of reach, positions are harder to hold, and the job market remains volatile as 2026 unfolds.

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