"With hiring largely frozen in the US, any uptick in firings could set off alarm bells. Just this week, Amazon slashed 14,000 jobs; Paramount laid off about 1,000; and UPS announced it's shrunk by thousands more than expected this year. It's still a drop in the bucket - in terms of both Amazon's overall head count and the broader economy - and there's no guarantee that a wave of companies will follow suit."
""You see a significant number of companies either announcing that they are not going to be doing much hiring or actually doing layoffs, and much of the time they're talking about AI and what it can do," he said, in a Wednesday press conference following the latest interest-rate cut. "It takes some time for it to get in there," he added, referring to official government data, much of which is on hiatus during the government shutdown. "But we're watching that really carefully.""
Hiring is largely frozen across the United States, so any rise in firings could trigger broader concern. Amazon cut 14,000 jobs this week, Paramount eliminated about 1,000 roles, and UPS said it has shrunk by thousands more than expected this year. The labor market has been averaging roughly 1.7 million layoffs monthly and has not entered a recession. Companies cite AI, tariff uncertainty, and corrections for pandemic overhiring as reasons for cuts. Federal Reserve Chair Jerome Powell is monitoring these trends closely while government shutdowns delay official data. About twenty additional Amazon-sized layoffs would push the job market into a worrying state.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]