Major US companies, including Amazon and Pinterest, have announced significant layoffs in January 2026, contributing to growing recession fears. Amazon cut 16,000 corporate roles, while Pinterest plans to reduce its workforce by less than 15% to focus on AI initiatives. UPS and Nike are also among firms trimming jobs, with UPS planning to eliminate up to 30,000 positions this year. The US labor market is showing signs of strain, with layoffs in 2025 rising 58% from the previous year, marking the highest level since the pandemic. The average job search now takes 11 weeks, the longest since 2021, and the probability of finding a job has dropped to 43.1%. These developments have heightened concerns about a potential recession, which could impact risk assets, including cryptocurrencies. As recession fears grow, investors may shift towards safer assets, affecting the crypto market. However, some believe that economic stress could eventually benefit digital assets if monetary easing and lower interest rates are implemented, potentially boosting cryptocurrencies in the long term.