Additional Coverage:
- Even Fortune 500 giants are quietly cutting thousands of jobs for a reason most of us expected (marketrealist.com)
Layoffs Rock US Job Market: Even Fortune 500 Giants Feeling the Pinch
The U.S. job market has experienced a turbulent past two months, marked by significant uncertainty stemming from tariffs and a lack of economic data following a government shutdown. This instability has led numerous Fortune 500 companies to announce substantial layoffs, creating widespread anxiety among workers across various sectors.
The tech industry has been particularly hard hit in 2025, with over 22,000 workers losing their positions, according to Layoffs.fyi. While some companies have attributed these cuts to rising operational costs, U.S. President Donald Trump’s reciprocal tariffs, and shifts in consumer spending, others are pointing to corporate restructuring and the growing integration of Artificial Intelligence (AI) as primary drivers.
Major Companies Announce Significant Workforce Reductions:
- HP Inc. has been on a cost-cutting trajectory since before the pandemic. This month, the company revealed plans to lay off between 4,000 and 6,000 employees, aiming to generate $1 billion in gross savings by 2028. HP stated these layoffs are part of an effort to streamline operations, including the adoption of AI to enhance productivity.
- In October, Amazon announced the largest layoff in its history, planning to cut 14,000 corporate jobs, representing approximately 4% of its workforce. While analysts speculated this move was intended to boost AI development, the retail giant stated its goal was to reduce redundancy and operate more like the world’s largest startup. Affected employees are reportedly being given 90 days to seek internal positions.
- Prior to HP’s announcement, Verizon began laying off 13,000 employees in November as part of its restructuring efforts. According to a staff memo from CEO Dan Schulman, reported by Fortune, the telecommunications giant is trimming its workforce to simplify operations and “reorient” the company entirely.
- Nestlé revealed plans in October to cut 16,000 jobs globally as part of a broader cost-cutting initiative. Aiming to revive its financial performance amidst challenges like rising commodity costs and U.S.-imposed tariffs, the Swiss food giant indicated these layoffs would be implemented over the next two years.
- United Parcel Service (UPS) has also disclosed approximately 48,000 job cuts this year as part of its turnaround efforts. The logistics giant is experiencing shifts in its shipping outputs, with 93 daily operations at leased and owned locations closing this year.
- Late in October, General Motors initiated layoffs of about 1,700 workers across manufacturing sites in Michigan and Ohio. The auto giant cited slowing demand for electric vehicles and a market slump as the reasons for these cuts. Hundreds of additional employees are slated for “temporary layoffs” beginning next year.
- Salesforce has also trimmed an additional 262 jobs at its San Francisco headquarters, according to a filing cited by Tech Crunch. With CEO Marc Benioff discussing AI’s potential to reduce customer support roles, the company is reportedly eliminating another 1,000 jobs while simultaneously hiring more staff to sell its new AI products.
- In March, Meta announced a 5% workforce reduction, impacting 72,000 employees at the time. The company stated it would target “low performers” to prepare for an “intense year.” In May, the tech giant let go of 100 employees in its Reality Labs division, and in October, it laid off approximately 600 employees across its AI infrastructure units and other product-related roles.
- Within the entertainment industry, Paramount announced plans to lay off about 2,000 employees, or 10% of its workforce, months after completing its $8 billion merger with Skydance. The company initiated these layoffs by cutting 1,000 jobs in late October.
These widespread job cuts highlight a challenging period for the US economy, with major corporations adapting to shifting market conditions, technological advancements like AI, and various economic pressures.