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The current job landscape in America is fraught with uncertainty. Throughout the year, Americans have received conflicting messages about job security, prompting widespread concern regarding layoffs.
Current Layoffs in the U.S.
Recent data from the Labor Department indicates a surprising uptick in job growth. However, a separate report from ADP referred to January as a “lackluster” month for hiring. Despite these mixed signals, many companies are downsizing their workforce. According to a report by Challenger, Gray & Christmas, over 1.2 million job cuts were announced in 2025, marking a staggering 58% increase compared to last year and the highest level since 2020.
Notable corporations, including Amazon, Microsoft, and HP, are among those announcing significant layoffs. Additionally, Citigroup has commenced plans to cut 20,000 jobs, reflecting a trend that raises questions about job security across multiple sectors.
What To Do Now
In the face of potential layoffs, financial experts emphasize the importance of enhancing your savings. Ashley Morgan, an attorney specializing in debt and bankruptcy, recommends starting to save as much as possible while economic uncertainty looms.
“The ideal situation is to have a six- to twelve-month emergency fund. However, given current circumstances, it’s wise to save even more,” Morgan advises. “A robust savings account can alleviate stress during uncertain times.”
Strategies for Saving
To increase your savings, Morgan suggests evaluating your expenses and identifying areas where you can reduce spending. “Prepare for the worst,” she notes. “Understanding your financial limits will enable you to cut back where necessary.”
Considerations for Job Seekers
Even if you consider your job secure, having a healthy emergency fund is a smart financial strategy during a wave of layoffs. “If you maintain your job, you can use your savings for investments or personal endeavors. If not, those funds can support you during transitions,” Morgan explains.
It’s also crucial to be mindful of job market conditions during layoff trends. “Finding a new position may take longer than expected, and you might find yourself facing reduced salary offers due to increased competition,” she adds.
Ultimately, while navigating these uncertain economic times, building a financial buffer can equip you for various outcomes. Whether you’re facing job insecurity or planning for future investments, proactively managing your finances is essential.
