Global Layoffs Are Increasing: What's Happening?

Amazon, Nestlé, and UPS are among the global companies that have increased their layoff decisions, while consumer confidence has also been observed to decline. Concerns are rising over how automation and artificial intelligence-focused technologies are affecting the workforce.

According to Reuters, American companies announced more than 25,000 layoffs this month. This figure does not include UPS's 48,000 layoffs, which have been in effect since the beginning of 2025. In Europe, total layoffs have exceeded 20,000; Nestlé alone closed 16,000 positions last week.

Due to the U.S. government's historical shutdown, comprehensive data on layoffs is not available. However, investors have begun to monitor such experiences more closely. While year-end layoffs are generally accepted, most believe that many significant cuts could occur over a long period.

Adam Sarhan, CEO of 50 Park Investments, questions, "What does this mean for investors? What is the overall picture?" He notes that cuts at Amazon may indicate that the economy is slowing down.

Amazon announced that it would cut 14,000 job positions, while companies like Target and Procter & Gamble also made similar cuts of thousands of jobs. According to a KPMG survey conducted in September, 78% of U.S.-based executives indicated that they are under pressure to ensure that investments in artificial intelligence save money and increase profits.

Economists expect that entry-level jobs will be among those affected by changes due to automation. However, job growth in information technology, finance, and professional services sectors continues to parallel the use of artificial intelligence.

Allison Shrivastava, an economist at Indeed Hiring Lab, points out, "I don't see the impact of artificial intelligence clearly right now," noting that layoffs have increased in the tech sector.

While job data remains limited due to the government's shutdown in America, no significant increase in layoff rates has been observed. According to weekly unemployment figures, job growth continues to remain weak. ADP estimated a job increase of 14,250 in the four-week period ending on October 11.

Economists say labor is stuck in a period of "low hiring, low layoffs." Companies are not filling vacant positions and are secretly reducing workforces.

If layoffs accelerate, this could put additional pressure on consumer confidence and the overall economy. Federal Reserve officials are concerned about workforce developments in this environment. Shrivastava summarizes the situation by stating, "I describe it as a 'hold your breath' environment."