1.2 Million US Job Cuts Signal Recession Risk and Renew Debate Over Crypto’s Role
A fresh round of job cuts at major US companies is raising worries that the economy could be close to a recession...
Quick overview
- Major US companies are announcing significant layoffs, raising concerns about a potential recession.
- Amazon plans to cut 16,000 corporate roles, while Pinterest and UPS are also reducing their workforce significantly.
- Layoffs in 2025 increased by 58% compared to the previous year, marking the highest level since the pandemic.
- Rising unemployment may pressure risk assets like cryptocurrencies, but could also lead to recovery in risk appetite if economic conditions improve.
A fresh round of job cuts at major US companies is raising worries that the economy could be close to a recession. In January 2026, several well-known firms announced big layoffs, adding to the high numbers seen last year.
Amazon disclosed plans to cut about 16,000 corporate roles, following 14,000 layoffs in October, as it restructures operations and redirects spending toward artificial intelligence. Pinterest confirmed it will reduce less than 15% of its workforce and shrink office space, with changes set to conclude by September 30. United Parcel Service said it may eliminate up to 30,000 operational roles, while Nike is also trimming staff to protect margins.
These job cuts follow about 1.2 million layoffs in 2025, showing a big change from the strong job market seen earlier.
Labor Market Data Echo Past Recessions
Layoffs usually increase early in the year as companies review budgets, but this year’s numbers are unusually high and lasting. US layoffs rose 58% in 2025 compared to the year before, reaching the highest level since the pandemic, according to Global Markets Investor.
Aside from 2020, last year saw the most job cuts since the 2008 financial crisis. In the past, layoffs at this level have mostly happened during recessions.
🇺🇸 JUST IN: The SEC released guidance clarifying how federal securities laws apply to tokenized securities.
It also outlines the distinction between issuer-sponsored and third-party tokenization models. pic.twitter.com/hohs8JDw8Z
— Cointelegraph (@Cointelegraph) January 29, 2026
Several key job market signs add to these concerns:
- The average job search now takes 11 weeks, the longest since 2021.
- In December 2025, the chance of finding a job dropped to 43.1%, down 4.2% from the previous year.
- The US economy lost an average of 22,000 jobs per month over the last three months
Market strategists note that similar patterns have preceded every US recession since 1950.
What a Recession Could Mean for Crypto Markets
Rising unemployment typically pressures risk assets, and cryptocurrencies are no exception. As recession fears grow, investors often rotate toward defensive positions, favoring cash and traditional safe havens. This dynamic has already supported precious metals, while Bitcoin has struggled to build sustained momentum.
A weaker job market can also hurt consumer spending. When incomes grow more slowly, people are less likely to make risky investments, which can lower short-term demand for digital assets. Still, history shows the long-term effects can be more complex.
If economic stress forces policymakers toward rate cuts or renewed liquidity support, cryptocurrencies could benefit in later stages of the cycle. For long-term investors, the current labor market downturn may ultimately set the stage for a recovery in risk appetite—once macroeconomic clarity returns.
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