January Layoff Wave: Over 100 Companies File WARN Notices Despite Strong Economy

The new year has brought an unwelcome gift for thousands of American workers: pink slips. More than 100 companies have filed Worker Adjustment and Retraining Notification (WARN) notices for January 2026 layoffs, signaling one of the largest waves of job cuts since the pandemic recovery began. The roster of affected employers reads like a who's who of corporate America.

The Corporate Casualty List

Amazon leads the January notices with plans to cut between 1,001 and 2,500 workers across various facilities. The e-commerce giant, which has been aggressively investing in AI and automation, continues to trim headcount even as revenue grows.

FedEx, General Motors, Nike, Wells Fargo, Verizon, and McDonald's have also filed notices affecting thousands of workers. The diversity of industries represented—from logistics to automotive to retail to finance—suggests this isn't a sector-specific downturn but a broader corporate restructuring wave.

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

— Bryan Driscoll, HR consultant

The Economic Paradox

What makes January's layoff wave so striking is the macroeconomic backdrop. GDP growth topped 4 percent annually in 2025's third quarter, and corporate profits remain near record highs. By traditional measures, this should be a time of hiring, not firing.

Yet the disconnect between corporate profitability and employment security has become a defining feature of the 2026 economy. Companies are finding ways to grow revenue while simultaneously reducing headcount, often by investing in automation, AI, and efficiency initiatives that eliminate the need for human workers.

Goldman Sachs predicts AI-driven layoffs will continue through 2026 as companies prioritize automation over hiring. Major tech firms alone have cut over 54,000 jobs since the ChatGPT-driven AI boom began, citing efficiency gains enabled by artificial intelligence.

The Tariff Factor

President Trump's trade policies are contributing to corporate restructuring decisions. Companies cited tariffs as a primary driver for several of the WARN notices, as import duties raise costs and force difficult choices about domestic operations.

The manufacturing sector, in particular, faces a complex calculus. While tariffs are intended to encourage domestic production, the higher costs they impose can make automation investments more attractive than maintaining labor-intensive operations. Some companies are choosing to automate rather than absorb tariff-related cost increases.

Store Closures Accelerate

Retail continues to shed workers as store closure announcements accelerate. The shift to e-commerce, already well underway, has been supercharged by the pandemic's acceleration of digital shopping habits. Physical retail locations that survived the initial pandemic wave are now facing a second reckoning.

Macy's, which recently announced 14 more store closures, exemplifies the trend. Even as the economy grows, foot traffic to traditional retail locations continues to decline. The jobs lost in these closures often cannot be replaced by e-commerce fulfillment positions, which tend to be located in different geographies and require different skills.

The White-Collar Recession

Perhaps most notable about January's layoffs is their composition. Unlike previous downturns that disproportionately affected blue-collar and service workers, the current wave is hitting white-collar professionals particularly hard.

Tech companies continue to trim engineering, product, and administrative roles. Financial services firms are consolidating back-office functions. Even healthcare organizations are reducing administrative headcount as they integrate AI tools that automate routine tasks.

For workers who assumed their education and professional credentials provided job security, the current environment is delivering a harsh lesson. No sector and no role is immune from the efficiency pressures driving corporate restructuring.

The Human Cost

Behind the statistics are real families facing real consequences. Job loss triggers a cascade of financial stress—mortgage payments, healthcare coverage, retirement savings, and daily expenses all suddenly become precarious.

The timing of January layoffs is particularly cruel, coming immediately after the holiday season when many families have stretched their budgets. Workers who learned of their termination in December often face the prospect of job searching during the slowest hiring period of the year.

What Workers Should Do

For workers in industries experiencing layoffs, proactive preparation is essential:

• Build emergency savings: Financial advisors recommend maintaining 3-6 months of expenses in liquid savings, but given current uncertainty, more conservative workers are targeting 9-12 months.
• Update skills: Workers in roles susceptible to automation should invest in skills that complement rather than compete with AI—creative problem-solving, relationship management, and strategic thinking.
• Expand networks: Job searching increasingly happens through personal connections. Building and maintaining professional networks before they're needed provides valuable insurance.
• Consider portable benefits: Health insurance, retirement accounts, and other benefits tied to employment become vulnerable during transitions. Understanding options for maintaining coverage is essential.

The Outlook

The January layoff wave likely represents the beginning rather than the end of corporate restructuring in 2026. As AI capabilities expand and companies face continued pressure to deliver efficiency gains to shareholders, headcount reductions will remain an attractive lever.

The economy can remain healthy by traditional measures—GDP growth, corporate profits, stock market gains—while simultaneously shedding workers. This new reality requires a fundamental rethinking of how we measure economic success and how we provide security for workers navigating an increasingly uncertain labor market.

More than 100 WARN notices in January is a warning, indeed—just not the kind that comes with 60 days' notice.