Global firms ramp up job cuts amid weak sentiment, Al push

Some target white-collar roles vulnerable to Al automation, not jobs in shops or factories

- 

Companies around the globe have ramped up job cuts, with blue chips from Amazon to Nestle to United Parcel Service (UPS) reining in spending while consumer sentiment dims and 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 in October, not including UPS’ 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.

That is even if year-end layoffs are common and many of the eye-catching cuts will be stretched out over a prolonged period.

“Investors are asking themselves, what does this mean? And specifically, what’s the overall picture since we can’t see it?” said Mr Adam Sarhan, chief executive 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 strong”.