NEW YORK / WASHINGTON

Companies in the US are increasing layoffs as they shift toward automation and higher productivity targets.

US employers announced 108,435 layoffs in January, marking a 118% year-on-year increase, according to consultancy Challenger, Gray & Christmas.

The US recorded its highest number of layoffs for the month of January since 2009, with transportation, technology, healthcare, chemicals and media among the leading sectors.

Contract losses, market and economic conditions, restructuring efforts and closures of stores, units or departments were cited as the main reasons for layoffs last month. The growing use of artificial intelligence applications and concerns over tariffs were also listed as contributing factors.

Many firms are increasing investment in AI amid economic fluctuations to boost productivity and streamline corporate structures. Sluggish consumer demand, cost pressures and concerns about a potential economic slowdown are also driving restructuring efforts.

As AI and automation reshape white-collar employment, job losses in this segment are increasing, while competition intensifies in a rapidly changing market.

Many major tech, retail, and communications players recently announced thousands of corporate downsizing measures. Amazon, UPS, Meta, and Nike are some of the firms laying off workers recently, a situation reflecting that the balance in the labor market may be shifting.

US e-commerce giant Amazon announced about 16,000 layoffs worldwide on Jan. 28 to reduce management layers, boost individual accountability and eliminate bureaucracy, according to a statement by the firm’s senior vice president of “People eXperience and Technology,” Beth Galetti.

Amazon had laid off 14,000 white-collar workers in October 2025 and signaled further layoffs in 2026.

Chemical manufacturer Dow Inc. announced on Jan. 29 that it plans to lay off about 4,500 workers to improve its business through automation and AI to reduce costs and promote efficiency.

Tech giant Meta reported on Jan. 13 that it planned to lay off about 10% of its 15,000 employees working on metaverse and other virtual reality (VR) products in its Reality Labs unit, as the firm redirects resources to AI-powered wearables and mobile device features.

Social media platform Pinterest said on Jan. 26 that it will proceed with layoffs and office space reductions, expected to affect less than 15% of its workforce.

Pinterest said it is reallocating resources to AI-focused roles and teams, prioritizing AI-powered products and capabilities.

Shipper UPS announced it is closing about 24 buildings in the first half of the year and replacing them with automation across its network, according to a report on Jan. 27.

The firm had laid off 48,000 people last year, including about 34,000 operational workers, in its third-quarter 2025 financial results.

Tech firm HP said on Nov. 25, 2025, that it plans to lay off between 4,000 and 6,000 workers globally under a company-wide initiative to increase consumer satisfaction and product innovation led by AI.

Telecommunications company Verizon announced 13,000 layoffs in November 2025 to meet consumer needs and boost its market position.

Sportswear maker Nike said it is laying off 775 workers to increase profits and accelerate automation efforts, according to a report last month. The decision will mainly affect distribution centers in Tennessee and Mississippi.

Meat producer Tyson Foods said in November 2025 that it will close its beef plant in Lexington, Nebraska, which employed 3,200 workers, while reducing operations at its plant in Amarillo, Texas, to a single shift, affecting 1,700 workers.

American Airlines announced it will cut its management and support workforce at its Fort Worth headquarters -- reports say the move will affect hundreds of employees.

Citigroup laid off about 1,000 people in January as part of restructuring efforts and is planning further reductions in March -- the firm said it aims to take advantage of expected efficiency gains.

Telecommunications firm T-Mobile said at the end of December 2025 that it will lay off workers in Washington state, including about 393 employees scheduled to be cut in April.

Retail giant Walmart said recent changes in location and business strategy prompted it to relocate some positions connected to New Jersey last month -- about 100 workers at the Hoboken office will be affected. The retailer had laid off nearly 700 workers in New Jersey last year.

Retail chain Target said in an internal memo that it is changing how it manages and monitors stores to improve consumer experience -- about 500 positions at distribution centers and regional offices will be eliminated, according to the memo.

*Writing by Emir Yildirim