Last year, employers across the United States cut nearly 1 million jobs—the highest number of layoffs since 2020. Companies of every size, in every sector, are looking for ways to minimize their workforce.
GM has cut more than 6,000 jobs over the past two years, despite rising profits and strong stock performance. Amazon has eliminated more than 27,000 jobs since 2022. These weren’t desperate cuts driven by survival. Profitable corporations are eliminating positions because of a new reality: they can grow revenue without growing headcount.
The Job Market Is Changing
Labor expert Andy Challenger noted that job cuts at this level have historically occurred either “during recessions or […] during the first wave of automations that cost jobs in manufacturing and technology.”
Amazon CEO Andy Jassy openly stated that AI will “reduce our total corporate workforce as we get efficiency gains.” And while not every cut is AI-related, Anthropic CEO Dario Amodei predicts AI could eliminate half of all entry-level white-collar jobs and spike unemployment from today’s 4% to 10–20% within five years.
Today, companies are rethinking their hiring plans as automation and efficiency tools expand. According to Indeed’s 2026 Hiring Trends Report, businesses aren’t planning for a surge in new roles; they’re planning to do more with the teams they already have.
A Safety Net? What’s That?
Consider these trends against a disturbing backdrop: twenty-one percent of Americans have zero emergency savings. Zero. Just 46% have three months of expenses saved—now considered bare minimum since the average job search stretches four to six months.
When you’re out of work, you still have bills to pay. Total household debt hit $18.58 trillion last year. Credit card balances: $1.23 trillion. Auto loans: $1.66 trillion.
No wonder so many have looked at alternative ways to earn money.
Building Real Income Diversification
Besides emergency funds, financial planners consistently recommend multiple income streams. And while adding one can be smart, it also demands time and consistent effort—so before you commit, ask yourself a few critical questions:
- Is it stable? Will this income stream endure when the economy tightens, or does it rely on short-term demand?
- Is it repeatable? Does it build ongoing value through genuine customer relationships, or does it reset to zero constantly?
- Is it essential? Are you offering something people truly need and will continue to pay for, even in uncertain times?
- Is it scalable? Can your effort grow into something that strengthens families and communities, not just fill spare hours?
Control What You Can Control
You can’t control corporate restructuring or AI advancement. But you can make smart financial decisions, like avoiding debt and building income diversification now—before circumstances force your hand.
As the Chinese proverb goes, “The best time to plant a tree was 20 years ago. The second-best time is now.” The same applies to growing a financial future, as far from the pruning shears of corporate America as possible.
