Over 100 companies including Nike and Amazon submit layoff plans — and one thing is to blame
In the past few years, layoffs across multiple industries have impacted the U.S. job market by leaving hundreds of thousands unemployed. There were several reasons behind this, including AI and automation, cost-cutting measures, and a goal for having a streamlined workforce. As the economy adjusted to shifting business conditions, it heightened the anxiety among the workers. It has been revealed that several companies have once again announced significant job cuts in 2026.
Even though the year has just begun, more than 100 well-known companies, such as Amazon, Nike, and Verizon, have submitted the WARN notices signaling their plan for layoffs, as reported by Business Insider. Under the U.S. labor law, WARN notices require large employers to issue warnings before major layoffs or site closures at least 60 days in advance. It has been revealed that most of the recent layoff notices are extensions of workforce reductions that were announced earlier. Meanwhile, in a recent announcement, Angi, a home-services marketplace which was formerly known as Angie’s List, announced its plans to eliminate about 350 positions.
Officials revealed that the move is aimed at lowering the overall costs and reshaping its workforce for future growth. The company also aims to take advantage of efficiency gains made possible by the advancements in AI. Angi expects this wave of layoffs to reduce its annual expenses by roughly $70 million to $80 million. Similarly, just days ago, Tailwind, a very popular web platform, also announced that it has reduced its technical team, laying off many of its engineers. The decision was driven by a sharp decrease in revenue due to rapid advances in AI.
On January 6, CEO Adam Wathan wrote, "75% of the people on our engineering team lost their jobs here yesterday because of the brutal impact AI has had on our business." In 2025, a survey released by the World Economic Forum highlighted how AI is reshaping the global workforce. It was reported that about 41% of the companies worldwide have said that they expect to reduce their workforce over the next five years as AI takes over more of the human tasks.
Geoffrey Hinton, the computer scientist who is often referred to as the godfather of AI, also warned in an interview that the tech is capable of taking over a large number of jobs in 2026. He said, "We're going to see AI get even better. It's already extremely good. It's already able to replace jobs in call centers, but it's going to be able to replace many other jobs." Giving an example, Hinton pointed out how AI has already developed from handling little coding tasks to now completing full-length projects. He went on to compare the rise of AI to the changes brought by the Industrial Revolution, as reported by Business Insider.
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