US Jobs Look Strong, But AI Layoffs Keep Piling Up
The US job market still looks healthy on paper, but companies across tech, finance, retail, and media keep cutting workers as they lean harder on artificial intelligence, or AI, to do more with fewer people.
What this means for you
If you follow the news but don't have time to learn every term, here's the plain version. The economy is adding jobs overall, but at the same time, many big companies are cutting staff because they are using AI and automation instead. Both things are true at once, and that is why the picture feels confusing right now.
The main numbers look solid. US employers added 165,000 jobs in October, more than expected, and the unemployment rate dipped slightly to 4.1%. Private companies added 86,000 jobs that month too.
Other signs point the same way. In September, job openings rose by 333,000 to reach 7.5 million, and hires went up by 131,000 to 5.4 million, according to data known as JOLTS, which tracks job openings and labor turnover. Layoffs and resignations across the country actually fell, dropping by 127,000 to 1.6 million in September, the lowest level since March 2025.
Announced layoffs are also down compared to last year. Outplacement firm Challenger, Gray & Christmas reported that US employers announced 43,994 layoffs in October. That is down 71% from a year earlier and the lowest October total since 2023.
But people don't feel as confident as the numbers suggest. A New York Fed survey found that expectations for a higher unemployment rate a year from now rose to 45.3%, the highest level since April 2020. Fear of losing a job within the next year climbed to 13.9%, even as expectations of finding a new job also rose, to 46.5%.
That anxiety isn't coming from nowhere. A long list of companies, especially in tech, have announced major cuts tied to AI and automation this year.
- Amazon cut 16,000 jobs in January, then made more cuts to its general AI unit in July.
- Meta is cutting 8,000 roles while shifting 7,000 workers into new AI-focused jobs.
- Microsoft laid off 4,800 workers, about 2.1% of its staff, and offered voluntary buyouts to 60,000 employees across four countries.
- Uber is shrinking its workforce by 10% to move faster on decisions.
- eBay is cutting 800 jobs, 6% of its staff.
- Snap is laying off 1,000 workers, 16% of its workforce, citing AI advances.
- Cisco Systems is cutting 4,000 roles to put more money into AI.
- Etsy is cutting 12% of its workforce as part of a restructuring.
The fintech and crypto world is seeing similar cuts. Visa is cutting 2,600 jobs, 7% of its staff. Intuit is laying off 17% of its full-time workers, and Coinbase is cutting 14% of its staff. Robinhood is shrinking by 10% to sharpen its talent pool, Block is cutting more than 4,000 jobs, and Fiserv has cut 3,000 workers since June while trimming senior management by 10%.
The cuts go well beyond tech. American Express is cutting 5% of its staff. Kroger plans to cut 3,000 corporate jobs over three years, and PepsiCo is eliminating 1,000 food and beverage jobs. Boeing plans to cut its commercial aircraft workforce by 5%, and Nike is cutting 1,400 tech-focused jobs.
Manufacturing and energy companies are trimming too. Dow Inc. plans to lay off about 4,500 workers in January to push automation further. Lucid is cutting 18% of its US workforce, and General Motors is downsizing some teams, cutting more than 1,000 jobs.
Media and entertainment companies are not spared either. Netflix is making its biggest layoff since 2022, cutting 1,000 jobs, 6% of its staff. Walt Disney is reportedly cutting thousands of roles to lower executive costs by 20%. Omnicom Group is cutting 15,000 jobs after buying Interpublic Group, on top of 4,000 cuts it made last year.
So the overall job market looks steady for now. But if your industry touches tech, media, or finance, AI-driven cuts are a real risk worth watching closely.
As a next step, check whether your own employer or industry has announced any AI-related restructuring in the past few months, so you are not caught off guard.
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Source: Anadolu Ajansı
