US companies have disclosed more than 25,000 job reductions this month, in sync with a global trend of increasing layoffs. Major corporations like Amazon, Nestlé, and UPS are scaling back expenditures due to waning consumer confidence, coupled with the rise of AI-driven automation displacing numerous positions across various sectors.
Recent data compiled by Reuters indicates that American companies have declared over 25,000 job cuts this month, excluding UPS’s previously reported 48,000 layoffs, dating back to the start of 2025. Meanwhile, in Europe, the total surpasses 20,000, with Nestlé accounting for the majority after announcing a substantial reduction of 16,000 positions last week.
Given the ongoing second-longest government shutdown in U.S. history, comprehensive figures on job cuts at the national level are currently unavailable. Consequently, investors are closely monitoring these individual layoff reports, even though year-end layoffs are customary, and many of the headline-making reductions will be phased in gradually.
Adam Sarhan, CEO of 50 Park Investments in New York, emphasized the significance of these job cuts, stating, “Investors are questioning the implications and the bigger picture in the absence of official data. Layoffs like those at Amazon indicate a slowdown in the economy rather than a strengthening. Mass layoffs are not typical in a robust economy.”
Amazon recently announced plans to eliminate around 14,000 positions from its corporate workforce, aligning with similar moves by Target, Procter & Gamble, and other companies shedding thousands of office jobs. Reports suggest that Amazon could potentially slash up to 30,000 jobs, as per Reuters.
The reasons behind these layoffs vary, with some companies, such as Target and Nestle, undergoing operational restructuring under new leadership. Carter’s, a baby-apparel firm, is cutting 15% of its office roles due to challenges posed by substantial import tariffs imposed by President Donald Trump.
Notably, companies like Amazon and Target are predominantly targeting white-collar positions deemed susceptible to AI automation, rather than roles in retail or manufacturing settings. Analysts speculate that Amazon’s actions may signal broader structural changes as firms strive to justify significant investments in AI technologies.
While Target’s layoffs impact 8% of its corporate workforce, Amazon’s cuts affect 14,000 roles within its extensive 1.5 million-employee base. A recent survey by KPMG revealed that U.S.-based executives have intensified their AI investments by 14% since the first quarter, now averaging $130 million for the upcoming year. Additionally, 78% of executives feel mounting pressure from stakeholders to demonstrate AI’s cost-saving benefits and profit enhancements.
Bank of America economists highlighted that entry-level jobs susceptible to automation are at higher risk of displacement. However, sectors with a substantial white-collar workforce, such as information, finance, and professional services, have reported job growth alongside increased AI adoption.
The possibility of accelerated layoffs poses a threat to consumer confidence and the broader U.S. economy, already strained by tariffs and inflation exceeding Federal Reserve targets. Federal Reserve officials, concerned about the labor market, fear a potential shift from the current “low-hiring, low-firing” scenario towards heightened layoffs.