News

United Parcel Service posted earnings that surpassed analysts’ expectations, disclosing a higher number of job reductions as part of its extensive restructuring plan. The company reported a net income of $1.31 billion in the third quarter, with an adjusted profit of $1.48 billion. UPS announced that it has cut 34,000 operational jobs and 14,000 management positions, exceeding prior estimates. The courier aims to achieve $3.5 billion in total cost savings by 2025 through its transformation strategy.

UPS has been streamlining its operations, including reducing ties with Amazon, its largest customer. Executives noted a 21.2% decline in Amazon’s volume with UPS in the third quarter. Moreover, the company completed a sale-leaseback transaction for five properties and closed operations at 93 buildings as part of its cost-saving initiative. CEO Carol Tomé expressed confidence in the company’s ability to deliver efficient service during the upcoming holiday season while adapting to industry challenges such as tariffs and sluggish demand. UPS is leveraging artificial intelligence to enhance its operational capabilities and navigate the evolving global trade environment.

Amazon announced plans to reduce its corporate workforce by 14,000 jobs in a move aimed at reducing bureaucracy, removing layers, and investing more in its AI strategy. This marks the e-commerce giant’s second-largest job cut since 2022 and comes as part of a larger effort to shift resources towards the company’s “biggest bets” in the rapidly changing technological landscape. The layoffs are seen as necessary to make Amazon more agile and efficient in leveraging AI technology to innovate and serve customers better. Despite the decision’s controversy, Amazon believes that streamlining its workforce is crucial for staying competitive and meeting the demands of the evolving market.

The company’s focus on tech infrastructure and AI development has been evident in its substantial investments in these areas, with a significant portion of its revenue dedicated to supporting the growth of Amazon Web Services. As Amazon continues to roll out AI agents and Generative AI, CEO Andy Jassy has emphasized the need for reevaluating and restructuring the workforce to align with the company’s technological advancements. While the job cuts may impact various departments, Amazon is offering affected employees opportunities to transition internally, while also providing support and benefits to those unable to find new roles within the company. In the coming years, Amazon plans to further optimize its operations, remove layers, and drive efficiency gains while focusing on key areas of growth and innovation.

American Airlines is on a mission to regain its footing in the post-Covid luxury travel market after falling behind competitors like Delta Air Lines and United Airlines. Despite offering more flights than any other airline, American accounted for just 2% of the profit generated by the top three U.S. carriers in 2025. Struggling with customer satisfaction rankings, on-time performance, and an outdated business-travel sales strategy, American is working to revamp its brand and improve its standing in the industry.

Led by CEO Robert Isom and Chief Customer Officer Heather Garboden, American is investing in customer experience enhancements, technology upgrades, and fleet refurbishments. The airline is focused on providing a holistic travel experience, from booking to onboard amenities, to attract passengers willing to pay for premium services. With a strategic shift towards customer-centric initiatives and a new focus on product offerings, American is striving to regain market share and investor confidence in the competitive airline industry.

Target revealed on Thursday that it will be laying off 1,800 corporate employees as part of a strategic restructuring plan to reignite growth after several years of stagnant sales. This marks the first major round of layoffs in a decade for the Minneapolis-based retailer, with the eliminated roles consisting of both employee layoffs and positions that will no longer be filled. The cuts represent an approximately 8% reduction in Target’s corporate workforce, with affected employees set to be notified next week.

The decision comes as Target nears a leadership transition, with incoming CEO Michael Fiddelke set to take the helm on February 1. Fiddelke, who has been instrumental in the company’s efforts to simplify operations and foster growth, emphasized in a memo to employees that the cuts are a necessary step towards building a more agile and efficient organization. While the layoffs may be difficult, he stated that they are crucial in driving the future progress and growth of Target. Target employees impacted by the layoffs will receive pay, benefits, and severance packages until January 3, with no roles in stores or the supply chain affected by the cuts.

Joe Friend, a director of product management at Microsoft, expressed feelings of betrayal after being laid off as part of the company’s restructuring. Friend, who had been with Microsoft for 20 years, was among 15 members of his group, including four other managers, who were let go. The layoffs disrupted his retirement plans, forcing him to reassess his future. Despite receiving a comfortable severance package, Friend has chosen to focus on helping a young entrepreneur build a small business and is unlikely to return to Big Tech in the future.

General Motors announced on Friday that they have laid off over 200 salaried employees, primarily CAD engineers, at their global tech campus in metro Detroit. This move is part of GM’s ongoing effort to restructure its design engineering team and strengthen core capabilities to boost profits. The impacted employees were informed of the layoffs via Microsoft Teams calls, citing “business conditions” as the reason for the role eliminations.

These layoffs come amidst a trend of white-collar U.S. headcount reductions within the automotive industry. Both GM and Ford have faced challenges in the EV market, with Rivian also recently laying off employees to restructure teams. Despite these challenges, GM raised its 2025 financial guidance and beat Wall Street’s expectations for the third quarter, leading to a significant increase in stock value. The automakers continue to navigate changes in tariffs and policy, seeking to lower added costs and remain competitive in the market.

Porsche swung to a bigger-than-expected operating loss in the third quarter, totaling 966 million euros, as the German sports carmaker grapples with slowing sales in China and challenges in its shift towards electric vehicles. Analysts had forecast a loss of 611 million euros, highlighting the impact of U.S. import tariffs and intense competition in the Chinese market. Despite these setbacks, Porsche remains hopeful for a recovery in 2026, with plans to implement large-scale solutions in current restructuring talks. The company also anticipates a significant drop in dividends for 2025 and further job cuts, with sales in China expected to continue declining into 2026. Porsche’s CEO will hand over the reins to a new leader in 2026 amidst one of the biggest crises in Europe’s auto sector.