Tens of thousands of Americans are losing their jobs in 2026 — not because their companies are struggling, but because they’re thriving. As the State of the Union 2026 painted a rosy picture of the U.S. economy, a brutal paradox is playing out across corporate America: companies are reporting record profits while simultaneously handing out pink slips at the fastest pace since the 2008 financial crisis. Here’s what’s really driving the wave of mass layoffs — and what it means for workers across the country.
The Numbers Are Staggering — And Getting Worse
The scale of job cuts in 2026 is hard to ignore. According to outplacement firm Challenger, Gray & Christmas, January 2026 alone saw the highest level of layoff announcements for any January since 2009. More than 1.2 million jobs were eliminated by U.S. employers throughout 2025, and 2026 is already on pace to surpass that.
In tech alone, over 30,700 workers were laid off in just the first six weeks of 2026, according to data from RationalFX — putting the sector on track to exceed 2025’s total of roughly 245,000 cuts.
Some of the biggest names driving the wave include:
- Amazon — approximately 16,000 corporate roles cut in early 2026, following 14,000 more in October 2025, for a total of nearly 30,000 positions eliminated in just a few months
- UPS — up to 30,000 operational jobs to be eliminated throughout 2026 under its “Network of the Future” program
- Citi — continuing a plan to shed roughly 20,000 employees, or 10% of its global workforce
- Intel — slashed 24,000 roles, or 20% of its workforce
- Mastercard — cutting 1,400 positions even as it continues to post strong profits
(Sources: Reuters, NewsNation)
Artificial Intelligence Is the New Justification — But Is It the Real Reason?
The word companies keep reaching for is artificial intelligence. Amazon CEO Andy Jassy warned employees last June that generative AI would reduce the need for corporate workers. Pinterest cited an “AI-forward strategy” when announcing 15% workforce cuts. Dow said it’s restructuring toward AI and automation. Angi estimated its AI-driven efficiencies could save up to $80 million annually.
But experts are skeptical. Data from Challenger, Gray & Christmas shows that AI-driven layoffs remain relatively uncommon as an actual documented cause — suggesting the technology may be “as much a forward-looking talking point as an actual driver of cuts,” as NewsNation reported.
What AI does provide is political cover. Framing a layoff as a “pivot to AI” sounds like visionary leadership rather than what it often is: a decision to cut labor costs and boost short-term shareholder returns.
Record Profits, Record Layoffs: How Both Can Be True
This is the central paradox of 2026’s job market. Amazon recorded revenues of $716.9 billion in 2025, up 12% year-over-year, with explosive growth in its AWS cloud division. The company simultaneously announced one of its largest-ever rounds of layoffs. ASML, the Dutch semiconductor equipment giant, reported record sales and profits in 2025 and then announced 1,700 job cuts in early 2026.
The explanation lies in how Wall Street evaluates corporate performance. Investors don’t just reward profits — they reward profit margins. Cutting thousands of workers can instantly boost a company’s earnings per share, sending its stock price higher even if revenues are flat. In a market where executive compensation is closely tied to stock performance, the incentive to downsize is built directly into the system.
“The jobs massacre is being carried out amid record-breaking corporate earnings and the extraordinary enrichment of executives and shareholders,” noted one analysis from early 2026.
Which Industries Are Cutting the Most Jobs?
The layoffs of 2026 are not limited to Silicon Valley. They span virtually every major sector of the American economy:
Technology: Amazon, Microsoft, Meta, Google, Salesforce, Pinterest, Intel, Autodesk, Block Inc.
Finance: Citigroup, Goldman Sachs, Wells Fargo, Mastercard, BlackRock
Retail & Logistics: UPS, Target, Walmart, FedEx, Nike
Manufacturing: Dow, General Motors, Tyson Foods, Boeing, 3M
Media & Entertainment: Disney, Paramount, Warner Bros. Discovery, The Washington Post
The breadth of cuts signals that this isn’t a sector-specific correction — it’s a fundamental reshaping of how American corporations think about their workforces.
What Workers Can Do Right Now
If you’re concerned about job security in this environment, there are concrete steps you can take:
- Document your impact. Keep records of projects, results, and metrics. When cuts come, employees who can quantify their value are harder to let go.
- Build cross-functional skills. Workers who can operate across departments — especially those with any AI literacy — are more likely to survive restructuring.
- Update your resume now, not after a layoff. The job market moves fast, and preparation takes weeks.
- Know your rights. Under the federal WARN Act, companies with 100 or more employees must provide 60 days’ notice before mass layoffs. If you weren’t notified, you may be entitled to back pay and benefits.
- Check unemployment eligibility. Workers laid off for business reasons — not misconduct — are generally eligible for state unemployment insurance. Visit careeronestop.org to find your state’s filing portal.
The layoff wave of 2026 is part of a broader shift in the American economy. For more context on what’s driving financial pressure on U.S. households, read our earlier coverage: What’s Getting More Expensive in 2026: The Biggest Cost Increases for U.S. Households and How Tariffs Actually Work — And Who Really Pays for Them.
Sources: Reuters, NewsNation, Challenger Gray & Christmas, RationalFX, U.S. Department of Labor.
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