The pink slips keep coming. After U.S. employers announced 1.17 million job cuts in 2025—the highest total since the pandemic year of 2020—new data suggests the bloodletting isn't stopping. A comprehensive survey of business leaders reveals that 60% of companies plan to lay off employees in 2026, painting a sobering picture for American workers entering the new year.

The New Normal: Smaller, More Frequent Cuts

What's changed isn't just the number of layoffs—it's their nature. Glassdoor's 2026 Worklife Trends analysis describes a structural shift away from rare, large-scale reductions toward frequent layoffs affecting fewer than 50 workers at a time. These "forever layoffs" now account for a majority of cuts, with the share of small layoffs rising from well under half in the mid-2010s to more than half today.

"The era of once-in-a-career layoffs is over," notes one labor economist. "Companies have normalized workforce reductions as a continuous management tool, not an emergency measure."

More than 100 companies have already filed WARN notices indicating plans to lay off workers in January 2026, according to WARNTracker.com. The wave includes major manufacturers, retailers, and tech firms—a reminder that no sector is immune.

Who's Cutting and Why

The layoff plans span industries, but certain patterns are emerging:

Technology and white-collar roles remain in the crosshairs. AI alone accounted for nearly 55,000 layoffs in 2025, as corporations eliminate layers of management and automate tasks that once required human workers. Looking ahead, 37% of companies expect to replace roles with AI by the end of 2026.

Manufacturing is restructuring. General Motors' Factory Zero assembly plant in Detroit laid off more than 1,100 workers permanently, with only a single shift resuming operations in January. Similar stories are playing out across the industrial sector as companies adapt to shifting demand patterns.

Major corporations are "right-sizing." The biggest job cuts of 2025 came from household names: UPS (48,000 jobs), Nestlé (16,000), Intel (15,000), Amazon (14,000), and Verizon (13,000). Chevron announced plans to cut 8,000 employees—15% to 20% of its global workforce—by the end of 2026.

The Hiring Freeze Factor

Layoffs tell only part of the story. Nearly half of companies are also pulling back on hiring, with 9% implementing outright hiring freezes and 41% reducing hiring volume. Only 9% report ramping up on hiring.

Among companies that have cut back on hiring, economic uncertainty is the most common reason, cited by 63% of respondents. The result is a job market where losing a position has become easier while finding a new one has become harder—a double squeeze on workers.

AI: The Elephant in the Room

"AI adoption is going to reshape the job market more dramatically over the next 18 to 24 months than we've seen in decades," predicts one industry analyst. The technology isn't just replacing routine tasks; it's climbing the corporate ladder, taking on analytical and creative work that was once considered safe from automation.

The companies planning layoffs aren't hiding their motives. Many explicitly cite AI-driven efficiency gains as the rationale for reducing headcount. For workers, the message is clear: adapt or risk obsolescence.

What This Means for Your Career

If the "forever layoffs" era is here to stay, workers need to adjust their mindset and strategies:

Job security is now portfolio security. Relying on a single employer for long-term stability is increasingly risky. Build skills that transfer across companies and industries.

Emergency funds matter more than ever. Financial advisors have long recommended three to six months of expenses in savings. In today's environment, six to twelve months may be more prudent, especially for workers in vulnerable sectors.

Network continuously, not just when job hunting. The best time to build professional relationships is before you need them. Treat networking as an ongoing activity, not a crisis response.

Embrace lifelong learning. The skills that got you hired may not be the skills that keep you employed. Invest in continuous education, particularly in areas where AI is a tool rather than a replacement.

Consider geographic flexibility. Some regions and industries are faring better than others. Willingness to relocate can significantly expand your options.

The Broader Economic Picture

Despite the layoff wave, economists aren't predicting a recession—at least not yet. Consumer spending remains resilient, and unemployment, while ticking up, remains historically low at 4.6%. The disconnect reflects a bifurcated economy where some sectors thrive while others struggle.

But as one economist bluntly put it regarding the job market outlook: "It's not going to improve, not at all."

The Bottom Line

The American workplace has entered a new phase. Layoffs are no longer exceptional events that happen during downturns; they're a permanent feature of corporate operations, deployed continuously as companies optimize for efficiency and adapt to technological change.

For workers, this means career planning must account for disruption as a normal occurrence rather than a rare catastrophe. Build your safety nets, diversify your skills, and never assume that today's job will be tomorrow's job. The forever layoffs era demands nothing less.