The key facts

  • Nonfarm payrolls rose by 165,000 in October, unemployment fell to 4.1%
  • Amazon, Meta, Microsoft, Uber, Netflix and other companies announced major layoffs, linking them to AI and automation
  • Consumer expectations are deteriorating: the share expecting higher unemployment in a year reached 45.3% — the highest since April 2020

Strong Data Amid a Wave of Layoffs

The American labor market is showing resilience: in October, nonfarm payrolls grew by 165,000 — stronger than expected — while the unemployment rate fell by 0.1 percentage point to 4.1%. The private sector added 86,000 jobs. According to September JOLTS data, job openings increased by 333,000 to 7.5 million, and hiring rose by 131,000 to 5.4 million. Layoffs and voluntary quits in September fell by 127,000 to 1.6 million — the lowest since March 2025. According to Challenger, Gray & Christmas, employers announced 43,994 job cuts in October — 71% fewer than a year earlier and the lowest October figure since 2023.

Technology and Financial Sectors

Despite the macroeconomic picture, large companies continue cutting staff, citing the shift to artificial intelligence and automation. Amazon announced 16,000 global layoffs in January, and in July announced additional cuts in its general AI division. Meta is eliminating 8,000 positions and moving 7,000 employees to new AI-related roles; Microsoft laid off 4,800 people (2.1% of its workforce) and offered voluntary buyouts to 60,000 employees in four countries. Uber is cutting its workforce by 10% to speed up decision-making, eBay by 800 positions (6%), Snap by 1,000 employees (16%) citing AI development, Cisco by 4,000 roles to reallocate investment into AI, and Etsy by 12% during a restructuring. In the financial and crypto sectors, Visa is cutting 2,600 positions (7%), Intuit 17% of full-time employees, Coinbase 14%, Robinhood 10% for 'talent density,' Block is laying off more than 4,000 people, and Fiserv has cut 3,000 workers since June and reduced senior management by 10%.

Layoffs Extend Beyond IT

The wave of layoffs is also hitting non-tech industries. American Express is cutting 5% of its staff, Kroger 3,000 corporate employees over three years, and PepsiCo 1,000 positions in its food and beverage divisions. Boeing plans to trim 5% of the workforce in its commercial aircraft division, and Nike 1,400 technology positions. Dow Inc. intends to lay off about 4,500 people in January to accelerate automation, Lucid is cutting 18% of its US workforce, and General Motors is dissolving certain teams and laying off more than 1,000 workers. Media conglomerates are also trimming staff to save money and prioritize AI: Netflix is conducting its largest cut since 2022 — 1,000 people (6% of staff); Walt Disney, according to reports, is eliminating thousands of roles to reduce management costs by 20%; and Omnicom Group, after acquiring Interpublic Group, is cutting 15,000 jobs — following 4,000 layoffs last year.

Anxious Consumer Sentiment

Americans' sentiment diverges from the employment statistics. According to the New York Fed, the share of consumers expecting higher unemployment in a year reached 45.3% — the highest since April 2020; fear of losing a job within 12 months rose to 13.9%, and expectations of finding a job rose to 46.5%. Thus, formally strong hiring figures are combined with noticeable anxiety amid corporate layoffs, which companies link to the pivot toward AI and automation.