Major companies announce mass layoffs, ending 'no hire, no fire' era
A wave of major corporate layoffs hit the U.S. job market Tuesday, with Amazon announcing 14,000 corporate job cuts and UPS revealing it has eliminated 48,000 positions this year, signaling what labor experts say is the end of the "no hire, no fire" job market that defined most of 2025.
Target also notified Minnesota employment officials Tuesday that it plans to lay off more than 800 workers in January as part of a broader restructuring affecting 1,800 corporate positions. The announcements come as companies cite artificial intelligence investments, tariff pressures, and economic uncertainty as drivers for workforce reductions.
Summaries 3 points:
- Major companies including Amazon, UPS, and Target announced large layoffs, signaling the end of the 2025 “no hire, no fire” stalemate as employers move to cut layers and streamline operations.
- Executives cite generative AI investments, efficiency gains, tariff pressures, weaker shipments, and softer retail performance as key drivers behind workforce reductions across white-collar and operational roles.
- Amazon plans to cut about 14,000 corporate jobs (roughly 4% of its white-collar staff) as part of a broader restructuring to reduce bureaucracy and reallocate resources toward AI, with similar caution rippling through other sectors.
Corporate Giants Slash Workforces
Amazon's cuts represent nearly 4% of its corporate workforce, with CEO Andy Jassy previously indicating that generative AI would enable the company to operate with fewer employees. The e-commerce giant said affected workers will have 90 days to find new internal positions, with severance packages for those who cannot secure new roles.[1][2][3]
UPS disclosed its massive workforce reduction in third-quarter earnings, revealing 34,000 operational workers and 14,000 management positions were eliminated through the first nine months of 2025. The logistics company, which started the year with nearly 500,000 employees, said the cuts are part of efforts to achieve $2.2 billion in cost savings.[4][5][6]
Target's layoffs will primarily affect its Minneapolis headquarters, with incoming CEO Michael Fiddelke telling employees the cuts aim to reduce "too many layers and overlapping work" that have slowed decision-making.[7][8][9]
End of Job Market Stalemate
"No question that this is a shift, and it does seem to me it signals that 'no hire, no fire' is a thing of the past," John Challenger, CEO of outplacement firm Challenger, Gray & Christmas, told CBS News. "These are major layoffs, the kind of which we only see in periods of real change in the economy."[1]
The "no hire, no fire" period characterized much of 2025, with companies reluctant to both hire new workers and lay off existing staff amid economic uncertainty. But Tuesday's announcements suggest that delicate balance is breaking, with employers across the U.S. cutting nearly 950,000 jobs through September — the largest number since 2020.[2][3][1]
Multiple Pressures Drive Cuts
Companies are pointing to several factors behind the workforce reductions. Amazon specifically cited its need to invest in AI while reducing bureaucracy, with executives saying the technology represents "the most transformative" advancement since the internet.[1][2][3]
UPS attributed its cuts partly to tariff impacts and declining Amazon shipments, as the e-commerce giant builds its own delivery network. Target's restructuring follows four consecutive quarters of declining comparable sales and a 21% drop in net income.[4][5][6]
The layoffs occur as the Federal Reserve prepares to announce its interest rate decision Wednesday, with Chair Jerome Powell previously expressing concern about labor market weakness when announcing the first rate cut of 2025.[7][8][9]
Reference source
[1](https://www.cnbc.com/2025/10/28/amazon-layoffs-corporate-workers-ai.html)
[2](https://www.cnn.com/2025/10/28/business/amazon-layoffs)
[3](https://abcnews.go.com/Business/amazon-layoffs-highlight-impact-ai-experts-wake-call/story?id=126942988)
[4](https://www.finalroundai.com/blog/ups-layoffs-2025)
[5](https://abcnews.go.com/US/target-announces-plan-eliminate-1800-corporate-jobs/story?id=126818365)
[6](https://www.cnbc.com/2025/10/23/target-layoffs-corporate-jobs-sales-slump.html)
[7](https://www.cbsnews.com/news/federal-reserve-fomc-interest-rate-meeting-decision-october-29-forecast/)
[8](https://www.reuters.com/business/fed-poised-cut-rates-this-week-with-more-easing-likely-tap-2025-10-27/)
[9](https://www.usatoday.com/story/money/2025/10/28/fed-interest-rates-cut-october/86931218007/)
[1](https://www.cbsnews.com/news/amazon-ups-layoffs-labor-market-jobs-economy/)
[2](https://fortune.com/2025/09/29/why-cant-i-find-a-job-low-hire-fire-economy-labor-market/)
[3](https://fortune.com/2025/10/28/corporations-companies-mass-layoffs-2025-ai-tech-retail-tariffs/)
[1](https://www.usatoday.com/story/money/2025/10/28/amazon-layoffs-corporate-employees/86941789007/)
[2](https://www.cnbc.com/2025/10/28/amazon-layoffs-corporate-workers-ai.html)
[3](https://www.cnn.com/2025/10/28/business/amazon-layoffs)
[4](https://www.newsweek.com/ups-mass-layoffs-as-48000-jobs-cut-10951313)
[5](https://www.nytimes.com/2025/10/28/business/ups-layoffs-48000-workers-this-year.html)
[6](https://www.finalroundai.com/blog/ups-layoffs-2025)
[7](https://abcnews.go.com/US/target-announces-plan-eliminate-1800-corporate-jobs/story?id=126818365)
[8](https://www.cnbc.com/2025/10/23/target-layoffs-corporate-jobs-sales-slump.html)
[9](https://www.cbsnews.com/minnesota/news/target-restructuring-minnesota-employee-layoffs/)