Major corporations are cutting tens of thousands of jobs, intensifying worker anxiety in a labor market that has nearly ground to a halt. Amazon announced Wednesday it would eliminate 16,000 corporate positions in its second major round of cuts within three months. United Parcel Service said Tuesday it plans to cut as many as 30,000 operational jobs this year. Verizon, Intel, HP, Dow, and dozens of other firms have announced similar reductions.
The cumulative effect reveals an unusual moment in the labor market: hiring has stalled while layoffs accelerate. The U.S. economy added just 50,000 jobs in December, the weakest monthly total in recent years, even as companies eliminate positions across sectors citing tariffs, inflation, consumer spending declines, and investment in artificial intelligence.
Corporate Job Cuts Accelerate
The layoffs span technology, manufacturing, pharmaceuticals, food production, and consumer goods. Amazon said its cuts aim at “removing bureaucracy” in operations. Intel is targeting a core workforce of 75,000 by the end of 2025, down from 99,500 a year earlier — a reduction of roughly 25 percent. HP expects to lay off between 4,000 and 6,000 employees by the end of fiscal 2028. Verizon began laying off more than 13,000 employees in November. CEO Dan Schulman said the company needed to simplify operations and “reorient” the entire company.
Nestlé announced in October it would cut 16,000 jobs globally over the next two years as part of cost cutting aimed at reviving financial performance amid rising commodity costs and tariffs. Novo Nordisk, the pharmaceutical company that makes Ozempic and Wegovy, announced the elimination of 9,000 jobs — roughly 11 percent of its workforce — as it works to sell more obesity and diabetes medications amid rising competition.
Microsoft initiated two rounds of mass layoffs in 2025 — first cutting 6,000 positions and then another 9,000. Procter & Gamble said it would cut as many as 7,000 jobs over the next two years, representing 6 percent of its global workforce.
General Motors cut about 1,700 jobs across manufacturing sites in Michigan and Ohio last fall. Paramount announced roughly 1,000 layoffs in October and later disclosed plans to cut another 1,600 jobs as part of divestitures in Argentina and Chile. Target eliminated about 1,800 corporate positions.
Why Companies Are Cutting
Across sectors, employers cite converging pressures. President Donald Trump’s tariffs have raised operational costs. Inflation remains persistent despite recent moderation. Consumer confidence fell to levels not seen since 2014, dampening spending that drives business revenue. Simultaneously, companies are investing heavily in artificial intelligence and automation — work they say will reduce future staffing needs in corporate roles.
Economists said businesses are largely at a “no-hire, no-fire” standstill, forcing many to limit new work and pause openings entirely amid economic uncertainty. Some companies are completing workforce adjustments begun during the pandemic, when aggressive hiring occurred. Dow announced plans to cut about 4,500 jobs Thursday as part of broader operations streamlining, which includes adopting artificial intelligence to increase productivity. The move comes on top of 1,500 roles eliminated in January 2025 and another 800 in the summer.
CEO Andy Jassy of Amazon previously indicated he anticipated generative artificial intelligence would reduce Amazon’s corporate workforce. UPS said its cuts will be achieved through voluntary buyout offers for full-time drivers and attrition as the company completes a broader turnaround that includes reducing the volume of Amazon shipments it handles.
Federal government reductions compounded the labor-market pressure. Thousands of federal government employees lost their jobs in cuts taken by the Trump administration, forcing many to seek new work and further straining workers’ overall sentiment about finding stable employment.
The Breadth of Displacement
The impact falls unevenly across regions. Tyson Foods closed a plant in Lexington, Nebraska, that employed 3,200 people — roughly a third of the town’s population of 11,000. The layoffs began January 20. The company notified state officials it was temporarily retaining under 300 workers to help complete the closure. Tyson also cut one of two shifts at a plant in Amarillo, Texas, eliminating 1,700 jobs.
ConocoPhillips announced plans to lay off as many as one-quarter of its workforce — between 2,600 and 3,250 workers — with most cuts occurring before the end of 2025. Lufthansa Group said it would shed 4,000 jobs by 2030.
As layoffs accumulate and hiring stalls, workers face a narrowing window for job mobility. Job openings have fallen to near five-year lows. For those seeking work, the combination of reduced openings and a steady flow of newly laid-off competitors has diminished negotiating leverage.