US labor market remains resilient, though AI-driven layoffs continue

US macroeconomic data showed that its labor market remains resilient, but large-scale layoffs continue in the technology, finance, retail, and media sectors amid a broader push for automation and efficiency led by artificial intelligence.

US nonfarm payrolls rose by a stronger-than-expected 165,000 in October, while the unemployment rate dropped 0.1 percentage points to 4.1%.

Private-sector employment surged by 86,000 in October, while September JOLTS data showed job openings rose 333,000 to 7.5 million and hires rose 131,000 to 5.4 million.

National layoffs and resignations fell 127,000 to 1.6 million in September, the lowest since March 2025.

Some 43,994 layoffs were announced by US employers in October, down a whopping 71% year-on-year and the lowest October figure since 2023, according to Challenger, Gray & Christmas,

Consumer sentiment waned despite the strong macroeconomic data, as the expectations of a higher unemployment rate one year from now rose to 45.3%, the highest since April 2020, while fears of losing a job within 12 months rose to 13.9%, and job-finding expectations increased to 46.5%, according to the New York Fed.

Corporations shed jobs

Consumers are anxious amid a wave of corporate layoffs as the tech sector pushes toward AI and automation.

Amazon announced 16,000 global layoffs in January, followed by additional cuts to its general AI unit in July. Meta decided to eliminate 8,000 roles and reassign 7,000 workers to new AI-focused positions, and Microsoft laid off 4,800 workers, 2.1% of its workforce, and offered voluntary separation to 60,000 employees in four countries.

Ride-hailing platform Uber is reducing its workforce by 10% to speed up decision-making, while eBay is eliminating 800 positions, or 6% of its workforce.

Snap is laying off 1,000 workers representing 16% of its workforce due to AI advancements, while network tech firm Cisco Systems is cutting 4,000 roles to shift investments toward AI. E-commerce platform Etsy is slashing its workforce by 12% amid restructuring efforts.

The fintech and crypto sectors are also seeing similar measures, with Visa cutting 2,600 positions, 7% of its workforce, Intuit laying off 17% of its full-time staff, and Coinbase reducing its workers by 14%.

Stock trading platform Robinhood is shrinking its workforce by 10% to boost its talent density. Cash app developer Block is laying off more than 4,000 workers, and fintech firm Fiserv has cut 3,000 workers since June and reduced its senior management by 10%.

Not just tech sector

Downsizing and layoffs in sectors outside of technology also came to the fore.

American Express is cutting workers by 5%, supermarket chain Kroger is downsizing by 3,000 corporate staff over three years, and PepsiCo is eliminating 1,000 food and beverage jobs.

Boeing is planning to slash its commercial aircraft workforce by 5%, while Nike is cutting 1,400 technology-focused jobs.

Chemical manufacturer Dow Inc. plans to lay off around 4,500 workers in January to boost automation, while electric vehicle (EV) maker Lucid is reducing its US workforce by 18%, and automaker General Motors is downsizing certain teams and laying off more than 1,000 workers.

Legacy and media conglomerates are also trimming headcount in the US to cut costs and prioritize AI.

Netflix is doing its largest layoff since 2022 by letting go of 1,000 workers, or 6% of its workforce. Walt Disney is reportedly eliminating thousands of roles to reduce executive expenses by 20%, and Omnicom Group is cutting 15,000 jobs after its acquisition of Interpublic Group, following 4,000 layoffs last year.