Companies around the globe, from Amazon to Nestle and UPS, are initiating significant job cuts as they navigate a landscape of diminished consumer sentiment and increasing adoption of AI-driven automation. With over 25,000 announced job cuts in the U.S. this month alone, concerns about economic slowdown and structural shifts are on the rise, with white-collar positions particularly vulnerable to automation.

As companies like Amazon and Target focus on restructuring and justifying AI investment, economists warn of potential layoffs and their impact on consumer confidence and the broader economy. Despite a “low-hiring, low-firing phase”, the labor market faces uncertainty as firms navigate the evolving landscape of AI technologies and job market shifts.