The One Money Move Everyone Should Make as Layoffs Grow
Written by
Vance Cariaga
Edited by
Jenna Klaverweiden
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Americans worried about job security have been getting mixed messages so far this year.
With so much job uncertainty in the air, it’s important to be prepared. Here’s a closer look at the current state of layoffs, as well as the one money move everyone should make as layoffs increase.
Layoffs in the US
The latest Labor Department data revealed better-than-expected job growth in January, but a separate report from ADP found that January was a “lackluster” month for hiring.
The one thing for certain is that a whole lot of U.S. companies have been cutting staff. In 2025, employers announced more than 1.2 million job cuts — up 58% from the prior year and the highest level since 2020, according to a recent report from Challenger, Gray & Christmas.
High-profile companies that have announced thousands of layoffs in recent months include Amazon, Dow Inc., HP, Microsoft, Procter & Gamble, Tyson Foods, UPS and Verizon. Meanwhile, Citigroup is also in the process of cutting 20,000 jobs.
So what can Americans do amid all this uncertainty?
Do This Right Now
The best thing you can do to prepare for the possibility of a layoff is to start saving extra money immediately, according to Ashley Morgan, attorney/owner at Ashley F. Morgan Law PC, a Virginia-based firm that specializes in helping clients deal with debt and bankruptcy issues.
“When you have looming financial uncertainty, like job loss [or] the loss/reduction of income, you want to start saving as much as possible,” Morgan told GOBankingRates. “If you have a six- to 12-month emergency fund, you shouldn’t be too worried. But it never hurts to add a bit more to savings when there is widespread economic uncertainty.”
To find additional room for savings, she advised cutting back on expenses and determining the minimum you can live on.
“You need to plan for the worst — especially if you have limited savings or a high cost of living,” Morgan said. “You want to be sure you can cut back as much as possible.”
Other Considerations
Boosting your savings/emergency fund is a good idea whenever layoffs are on the rise — even if you believe your job is secure.
“If you end up keeping your job, you have the funds to put toward investment or more fun purchases,” Morgan said. “But if you do lose your job, the saved money can help you extend how long you can survive.”
Another thing to keep in mind is that when layoffs are trending higher, it might be harder to find a new job. “You need to plan to be unemployed longer and realize you might take a salary cut due to the large application pool,” Morgan said.
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