In a wave of cost-cutting and restructuring, major corporations across the globe — including Amazon, Nestlé, and UPS — have announced large-scale job cuts as they brace for economic slowdown and accelerate their investment in artificial intelligence (AI) technologies.

The layoffs reflect a growing unease among business leaders and investors about the state of the global economy, coupled with the disruptive effects of automation. Companies are cutting costs, reshaping operations, and preparing for a future where AI-driven automation increasingly replaces traditional white-collar jobs.

Global Wave of Layoffs

According to a Reuters tally, U.S.-based companies have announced over 25,000 job cuts in October alone — not including the 48,000 layoffs at UPS, which were disclosed earlier in 2025. In Europe, more than 20,000 jobs have been cut, with Nestlé leading the trend after its recent decision to eliminate 16,000 positions worldwide.

While large-scale layoffs are not uncommon toward year-end, the current wave stands out because it coincides with the U.S. government’s second-longest shutdown, making official job data scarce. Investors are increasingly relying on these corporate announcements as early warning signals of a broader economic cooling.

“Investors are asking themselves, what does this mean for the economy?” said Adam Sarhan, CEO of 50 Park Investments in New York. “Cuts like those at Amazon tell me the economy is slowing down, not getting stronger. You don’t have mass layoffs when the economy is healthy.”

Amazon, Nestlé, and Target Lead Corporate Restructuring

Amazon (NASDAQ: AMZN) confirmed plans to cut up to 14,000 corporate roles, though insiders suggest the total could reach 30,000 jobs. The e-commerce giant joins other major employers such as Target, Procter & Gamble, and Carter’s, all of which have announced reductions aimed at improving operational efficiency.

Target’s restructuring will affect approximately 8% of its corporate workforce, while Carter’s, facing steep import tariffs under President Trump’s trade policies, will slash 15% of its office staff.

For some firms, the job cuts are tied to leadership changes. Both Target and Nestlé have recently appointed new CEOs intent on streamlining operations and boosting shareholder value. However, the most striking trend is the focus on white-collar positions — particularly those vulnerable to automation.

AI Investment Fuels Workforce Transformation

Companies are increasingly turning to artificial intelligence to automate administrative, analytical, and customer-facing roles. According to a KPMG survey released in September 2025, U.S. executives expect to increase AI investment by 14% over the next year, with an average budget of $130 million.

More than 78% of corporate leaders report pressure from boards and investors to demonstrate tangible cost savings and productivity gains from AI adoption.

Analysts believe this could mark a major structural shift in employment patterns. White-collar workers, once shielded from automation, are now among the most exposed. A recent Bank of America report noted that entry-level professional jobs — especially in finance, information technology, and administrative services — are at high risk of being replaced by AI systems.

Still, not everyone is convinced the AI revolution is fully responsible for the layoffs.

“I’m reticent to say it’s AI just yet,” said Allison Shrivastava, economist with Indeed Hiring Lab in New York. “The tech sector has been cooling since 2022. AI has the potential to reshape the labor market, but its impact isn’t dominant right now.”

“Low-Hiring, Low-Firing” Labor Market

Despite alarming headlines, the overall U.S. labor market remains in what economists call a “low-hiring, low-firing equilibrium.” Data from payroll processor ADP showed only 14,250 new jobs created during the four weeks ending October 11, suggesting employers are quietly reducing headcount by not replacing vacated roles rather than through active layoffs.

This stagnant employment environment, compounded by high inflation and tariff pressures, poses challenges for both workers and policymakers. Federal Reserve officials have warned that if layoffs accelerate, it could further dampen consumer confidence and push the economy closer to a recession.

“It feels like we’re in a ‘hold-your-breath’ phase,” Shrivastava added. “Companies are pausing hiring and firing decisions while they wait to see how economic and technological trends play out.”

Outlook: AI Reshapes the Global Workforce

As the global economy navigates uncertainty, experts predict a continued realignment of jobs around AI technologies. While automation may create new roles in data science and machine learning, traditional white-collar positions — especially in middle management and routine analysis — face growing risk.

For now, firms like Amazon, Nestlé, and UPS appear focused on balancing cost efficiency with innovation, signaling a transformative yet turbulent chapter for the global labor market.