The U.S. labor market is experiencing its sharpest contraction since the early pandemic years.

Many major corporations have announced expansive layoffs in response to slowing economic growth and automation.

Through September 2025, employers have eliminated roughly 950,000 jobs, with projections suggesting that job losses will exceed one million by year end.

This will be the highest total since 2020 and closely mirrors the disruptive employment patterns seen in the mid-2000s when early waves of automation reshaped industrial and administrative work.

In the past several months, layoffs have accelerated across nearly every major sector.

Trends

Amazon eliminated 14,000 positions in late October, citing operational realignments following pandemic-era overexpansion.

General Motors announced layoffs affecting 1,700 employees, with hundreds more placed on temporary furlough as production slows.

In the media sector, Paramount confirmed plans to reduce its workforce by 10%, while UPS disclosed an extraordinary 48,000 job cuts as it streamlines delivery operations amid declining shipment volumes.

In the past several months, layoffs have accelerated across nearly every major sector.Target has shed approximately 1,800 employees, Nestlé announced 16,000 layoffs, and Lufthansa cut 4,000 jobs to address mounting operational costs in its European network.

Energy companies are also scaling back. ConocoPhillips expects to cut 20–25% of its workforce, while Intel will eliminate roughly 15%, and Microsoft has already reduced headcount by 9,000.

Even long-stable consumer brands such as Procter & Gamble have begun to adjust, announcing 7,000 layoffs, representing about 6% of their workforce.

The trend is global as well. Novo Nordisk, the pharmaceutical giant, announced plans to reduce its workforce by 9,000 employees, or about 11% of its workforce, as it faces increased competition in the obesity and diabetes drug markets.

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