Amazon, Nestlé and UPS Cut Tens of Thousands of Jobs as Efficiency Demands Grow
According to Reuters, major global corporations are announcing large-scale layoffs as economic growth slows and the AI investment race intensifies pressure on profit margins. Giants such as Amazon, Nestlé, and UPS have each revealed plans for thousands of job cuts, signaling a fundamental shift in corporate strategy.
In the United States, companies announced over 25,000 layoffs in October, in addition to 48,000 jobs eliminated by UPS earlier this year.
Read also: Amazon to Lay Off 30,000 Employees by Email, Citing AI Automation Plans
Across Europe, more than 20,000 positions are being cut, including 16,000 at Nestlé, which is undergoing the largest restructuring in its history.
Amazon has confirmed up to 14,000 corporate layoffs, though insiders expect the number could climb to 30,000. Other multinationals — including Target, Procter & Gamble, and Carter’s — are also cutting office jobs increasingly exposed to AI-driven automation.
Analysts note that this wave of layoffs reflects a structural shift: companies are under pressure to prove the return on AI investments, which have surged 14% in recent months. A KPMG survey found that 78% of U.S. executives face shareholder demands to demonstrate that automation delivers cost savings and higher profitability.
Economists caution, however, that the labor market is entering a “low-hiring, low-firing” phase — firms are hiring less, cutting selectively, and leaving vacancies unfilled. If layoffs accelerate, it could erode consumer confidence and destabilize the U.S. economy, already strained by high inflation and trade tariffs imposed by the Trump administration.
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