A new wave of job cuts is sweeping corporate America as companies adjust to higher costs and new technologies. On Tuesday, Amazon (AMZN) announced it will cut about 14,000 corporate roles, while United Parcel Service Inc. (UPS) confirmed that it has eliminated 48,000 positions this year. Target Corp. (TGT) also told Minnesota officials that more than 800 employees will lose jobs in January as part of a wider restructuring plan that affects 1,800 corporate positions.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
These announcements come after a year when many firms avoided both hiring and firing, waiting for clearer signals about growth. Now, that balance seems to be over. Labor analysts say the latest cuts point to the end of what some called the “no hire, no fire” phase of 2025. According to Challenger, Gray & Christmas, companies have announced close to 950,000 job reductions through September, the highest total since 2020.
AI and Efficiency Drive New Decisions
Each company cited a different reason for the changes, but efficiency is the shared goal. Amazon said the move will help it invest more in AI while cutting back on overlapping teams. The company noted that affected workers will have 90 days to find new internal roles before receiving severance pay.
UPS said the reductions include both operations and management roles and are part of an effort to save $2.2 billion. The company linked part of its slowdown to lower delivery volumes from Amazon, which has been building its own logistics network.
At Target, the upcoming layoffs are part of a plan to remove extra layers in management. New CEO Michael Fiddelke said the company has had slower decision-making and weaker results. Target’s comparable sales have fallen for four straight quarters, and net income has dropped 21% year-over-year.
Economic Pressures Build Across Industries
Beyond individual plans, companies are facing a mix of cost and policy pressures. Many are balancing AI investment with tariff-related expenses, while also watching demand trends as interest rates shift. The Federal Reserve is set to announce its next rate decision this week, and markets are watching for any sign that higher borrowing costs could slow hiring further.
We used TipRanks’ Comparison Tool to compare all three companies – AMZN, UPS, and TGT. It’s a useful tool to gain an in-depth examination of each stock and the retail industry as a whole.
