Global firms slash jobs amid weak sentiment, AI push
Companies worldwide are cutting thousands of jobs as consumer sentiment weakens and businesses increasingly adopt AI-driven automation. Major firms including Amazon, Nestle, UPS, Target, and Procter & Gamble have announced reductions in their corporate workforces.
U.S. companies have cut more than 25,000 jobs this month, excluding UPS’s earlier reduction of 48,000 roles. In Europe, layoffs exceed 20,000, with Nestlé accounting for most of the recent 16,000-role cut, News.Az reports, citing Reuters.
Amazon plans to trim up to 14,000 corporate positions, while Target will reduce 8% of its office staff. Analysts note that white-collar roles—particularly those susceptible to AI automation—are the main focus, reflecting companies’ efforts to justify billions in AI investments.
KPMG’s latest survey shows AI spending among U.S. executives has risen 14% since Q1, with an average investment of $130 million projected over the next year. Boards and investors are pressing firms to demonstrate cost savings and efficiency gains from AI.
Despite headlines, economists say the labor market remains in a “low-hiring, low-firing” phase, with firms quietly trimming staff by not filling vacated roles. Should layoffs accelerate, they may further weaken consumer confidence and strain the broader U.S. economy, already challenged by tariffs and persistent inflation.
Allison Shrivastava, economist at Indeed Hiring Lab, describes the current environment as a “hold-your-breath” phase, where companies are cautious while navigating economic uncertainty and AI-driven restructuring.
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