Corporate layoffs surge amid AI pivot, cost-cutting

Major US employers are slashing tens of thousands of white-collar jobs, citing cost-cutting and AI-driven efficiency. These moves signal that a leaner workforce is becoming the new normal in corporate employment.

It is a sharp reversal from the pandemic hiring spree.

Amazon announced 14,000 corporate job cuts on Tuesday, with reports suggesting the number could rise to 30,000. CEO Andy Jassy says he wants Amazon to run “like the world’s largest startup.” 

Analysts note that most of the company’s $31.4 billion Q2 capital spending went to AI and cloud computing.

UPS has already cut 48,000 positions this year, including 14,000 management roles.

PwC has cut 5,600 jobs this year, reducing its global headcount to below 365,000, marking its first workforce decline since 2010. It has also abandoned its goal of adding 100,000 new jobs by mid-2026.

Starbucks has already laid off 1,100 corporate employees in February and plans to eliminate 900 more roles as CEO Brian Niccol aims to increase efficiency and reduce complexity.

Target has begun laying off 1,800 corporate roles, its largest layoffs in a decade. Edtech company Chegg laid off 45% of its workforce as it shifted to an AI-driven model.

Many laid-off professionals face a stagnant job market. According to federal data, nearly 2 million Americans have been unemployed for over 27 weeks.

Meanwhile, blue-collar and frontline jobs in healthcare, trades, and hospitality remain in high demand. This shows a growing divide between manual labor opportunities and shrinking office work.