Companies around the globe have ramped up job cuts, with blue chips from Amazon to Nestle and UPS reining in spending while consumer sentiment dims and artificial intelligence (AI)-focused tech companies start to replace jobs with automation.
According to a Reuters tally, American companies have announced more than 25,000 job cuts this month, not including UPS's 48,000 figure, which dates from the beginning of 2025. In Europe, the total tops 20,000, with Nestle accounting for the bulk after last week's 16,000-role reduction.
With economy-wide numbers on job cuts not available given the US government is in the middle of its second-longest shutdown in history, investors are paying extra attention to these anecdotal stories of layoffs.
"Investors are asking themselves, what does this mean? And specifically, what's the overall picture since we can't see it?" said Adam Sarhan, chief executive of 50 Park Investments in New York.
Cuts like those at Amazon "tells me the economy is slowing down, not getting stronger".
Amazon said it would cut up to 14,000 jobs from its corporate workforce, joining Target, Procter & Gamble and others in axing thousands of office roles.
The reasons for the cuts vary. Some, like Target and Nestle, have new CEOs eager to restructure their operations.
What stands out is the focus by companies like Amazon and Target on white-collar roles seen as vulnerable to AI-driven automation, rather than those on shop or factory floors. Some analysts say Amazon's move could be an early sign of deeper structural shifts as companies push to justify billions spent on AI tools.
KPMG's latest survey of US-based executives released in September shows projected AI investment has jumped 14 per cent since the first quarter to an average of US$130 million over the next year. And 78 per cent of executives say they are under intense pressure from boards and investors to prove AI is saving money and boosting profits.
The occupations most likely to be affected would be where entry-level work is replaced with automation, Bank of America economists wrote on Oct 22.
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