UN 
(SDGTALKING) – A weak confidence environment, rising cost pressures, and the transformation brought about by artificial intelligence (AI) technologies in business processes have led major companies around the world to resort to mass layoffs. Global giants such as Amazon, Nestle, and UPS are parting ways with thousands of employees to cut costs and increase automation investments.
Tens of thousands of people are losing their jobs in the US and Europe
According to Reuters data, US-based companies alone announced more than 25,000 layoffs in October alone. This figure does not include UPS’s planned 48,000-person layoff program, which is set to begin early next year.
The picture is no different in Europe. With the total number of layoffs in the region exceeding 20,000, Nestlé’s restructuring decision affecting 16,000 people stands out.
Due to the U.S. government experiencing its second-longest shutdown in history, the delay in official employment data is causing investors to focus more on these developments.
CEOs seek return on AI investments
Amazon announced a layoff plan affecting 14,000 corporate employees. Reuters reported that this number could reach 30,000. Other giants such as Target, Procter & Gamble, and Nestlé are taking similar steps.
Some companies are accelerating layoffs in line with operational restructuring decisions made by newly appointed CEOs, while baby clothing brand Carter’s was forced to lay off 15% of its office workers due to US President Donald Trump’s high import tariffs.
Artificial intelligence targets white-collar workers
These cuts are concentrated in white-collar positions, not factories. Companies aim to reduce operational costs with AI-powered automation systems. Analysts emphasize that moves by retail giants such as Amazon and Target, in particular, are early signs of AI-driven structural transformation. While Target’s cuts affect 8% of its workforce, Amazon’s cuts will affect only 14,000 positions out of its 1.5 million global workforce.
AI investments are rapidly increasing
According to a survey published by KPMG in September, US executives’ AI investments increased by 14% compared to the first quarter of the year. Companies’ average AI spending is expected to reach $130 million next year.
Seventy-eight percent of executives stated that they are under intense pressure from boards and investors to prove that artificial intelligence reduces costs and increases profits. Bank of America economists, in their October 22 report, stated that automation will initially affect entry-level positions, but that employment growth has also been observed in the information, finance, and professional services sectors with the use of AI.
