Massive Layoffs Surge Across Major U.S. Companies, Citing AI, Tariffs, Inflation/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Thousands of job cuts are sweeping across major industries as companies cite rising costs, AI investments, and economic uncertainty. Firms including Amazon, UPS, HP, and Microsoft have all announced significant layoffs. The trend is heightening worker anxiety across the U.S. labor market.
Layoffs Surge Quick Looks
- U.S. companies are slashing tens of thousands of jobs
- Amazon, UPS, Nestlé, and Microsoft announce large layoffs
- Firms cite AI investment, tariff pressures, and restructuring
- Layoffs span sectors from tech to food to logistics
- Workers fear job market slowdown amid limited hiring
- Some companies opt for attrition and buyout offers
- AI integration is a recurring theme behind workforce reductions
- Economic pressures include inflation and new Trump-era tariffs
Deep Look
Layoffs Accelerate Across U.S. Industries, Intensifying Economic Anxiety
As economic uncertainty looms, a growing number of major U.S. companies are announcing significant layoffs, sparking concern among workers and economists alike. From technology to transportation to food production, employers are shedding tens of thousands of jobs, citing a mix of rising operational costs, slowing consumer demand, and the increased integration of artificial intelligence.
Although the broader job market remains in a state of stagnation—often described by economists as a “no-hire, no-fire” zone—many companies are pressing forward with deep staff reductions. Last month, the U.S. economy added just 50,000 jobs, a drop from 56,000 in November, signaling a potential slowdown in hiring.
Among the most high-profile cuts:
Amazon
The tech and retail giant announced the layoff of 16,000 corporate employees this week, following another 14,000 job eliminations just three months prior. Amazon attributed the reductions to corporate restructuring and its drive to eliminate “bureaucracy.” CEO Andy Jassy also pointed to the company’s increased focus on generative AI as a factor likely to reduce the need for certain roles.
UPS
United Parcel Service revealed plans to cut up to 30,000 operational jobs in 2026. The company cited a reduction in Amazon shipments and broader turnaround efforts. UPS said most of the cuts would be voluntary, through buyouts and attrition. These layoffs are in addition to 48,000 jobs eliminated in 2025.
Tyson Foods
Tyson began laying off 3,200 employees at its Lexington, Nebraska plant on January 20, a significant blow to a town with a population of just 11,000. Additionally, Tyson plans to eliminate 1,700 jobs at its Amarillo, Texas facility by ending one of its shifts.
HP
Computer maker HP announced plans in November to cut between 4,000 and 6,000 jobs as part of a long-term cost-cutting and restructuring strategy. The company is emphasizing AI adoption to boost productivity and aims to complete the layoffs by the end of fiscal year 2028.
Verizon
Telecom giant Verizon began laying off over 13,000 employees in late 2025. CEO Dan Schulman said the move was designed to simplify operations and reorient company strategy.
Nestlé
The global food conglomerate is slashing 16,000 jobs worldwide over two years as part of a restructuring plan to offset rising commodity prices and new tariffs. Nestlé said the layoffs are part of a broader effort to revive its financial performance.
Novo Nordisk
The Danish pharmaceutical company, known for drugs like Ozempic and Wegovy, announced it will cut 9,000 jobs — around 11% of its workforce — in response to competitive pressures and internal restructuring.
Intel
Chipmaker Intel is in the process of reducing its “core” workforce from nearly 100,000 to 75,000 through layoffs and attrition. The move is part of an effort to reboot operations and recover market share after years of underperformance.
Procter & Gamble
The consumer goods company behind brands like Tide and Pampers said last summer it would eliminate 7,000 jobs — 6% of its global workforce — over a two-year period, citing restructuring and trade-related cost pressures.
Microsoft
Microsoft executed two rounds of layoffs in 2025, first eliminating 6,000 jobs and then an additional 9,000. The company attributed the reductions to “organizational changes,” while also investing heavily in AI development.
Additional Companies Reducing Workforce
- General Motors: Cut 1,700 jobs at manufacturing plants in Michigan and Ohio, along with temporary layoffs.
- Paramount (Skydance): Eliminated 1,000 jobs in October and announced another 1,600 layoffs related to divestments in South America.
- Target: Cut 1,800 corporate jobs in October as part of cost-saving measures.
- ConocoPhillips: Plans to lay off between 2,600 and 3,250 workers—up to a quarter of its staff—by the end of 2025.
- Lufthansa Group: The airline plans to reduce its workforce by 4,000 jobs by 2030.
You must Register or Login to post a comment.