The job market is going through a rough patch. Amid widespread economic uncertainty, many companies have adopted a “no-hire, no-fire” stance — freezing most new positions while limiting recruitment to essential roles. Still, major layoffs across sectors are fueling anxiety among workers.
Businesses are citing rising operational costs, tariff pressures, and shifts in consumer behavior as key reasons for the slowdown. President Donald Trump’s new tariffs have added to the burden, while others like Amazon are redirecting funds to artificial intelligence investments.
“It’s not AI replacing workers directly — it’s AI’s appetite for cash that’s taking jobs,” said Jason Schloetzer, professor of business administration at Georgetown University, noting how companies are prioritizing infrastructure and automation spending over hiring.
Federal Uncertainty Adds to Job Fears
The public sector has not been spared. Since Trump’s return to office earlier this year, thousands of federal jobs have been cut, and many workers remain unpaid as the government shutdown nears its fourth week. Schloetzer said this has led employees to reassess job security in both public and private sectors.
Meanwhile, data from payroll firm ADP showed a loss of 32,000 private-sector jobs in September, underscoring a growing slowdown.
Major Companies Cutting Jobs
Amazon is slashing 14,000 corporate positions (around 4% of its workforce) while ramping up AI spending.
UPS has laid off 34,000 employees this year — more than its earlier forecast — and shut operations at 93 facilities.
Target announced 1,800 corporate job cuts (8% of its workforce) to streamline management.
Nestlé will eliminate 16,000 jobs globally over two years due to cost pressures and tariffs.
Lufthansa Group plans to shed 4,000 jobs by 2030, focusing on administrative roles as it adopts AI and digital tools.
Novo Nordisk is cutting 9,000 jobs (11% of staff) amid restructuring in its obesity and diabetes drug divisions.
ConocoPhillips aims to reduce its workforce by 25% as part of broader cost-cutting efforts.
Intel continues mass layoffs, trimming its headcount from 99,500 to 75,000 core workers to recover from financial struggles.
Microsoft has laid off 15,000 employees this year, including 9,000 in its Xbox and AI divisions.
Procter & Gamble plans to cut 7,000 jobs (6% of staff) within two years amid tariff-driven restructuring.
Paramount-Skydance began axing up to 2,000 positions after its merger.
General Motors has laid off 1,700 workers in Michigan and Ohio, citing challenges in its electric vehicle division.
Overall, the U.S. job market faces a complex mix of AI-driven realignment, tariff pressure, and economic caution, with hiring momentum slowing even as layoffs persist across industries.
