Global Firms Slash Jobs Amid Weak Sentiment, AI Push

Global Firms Slash Jobs Amid Weak Sentiment, AI Push

LONDON, A new wave of corporate layoffs is rippling across industries worldwide as major firms tighten budgets, brace for slowing consumer demand, and accelerate their shift toward artificial intelligence and automation.

From Amazon and UPS to Nestlé and Unilever, multinational corporations are cutting thousands of positions, in some cases entire departments, as executives look to shore up profits and reorient their business models around digital efficiency.

“The global economy isn’t in free fall, but it’s cooling fast,” said Elena Marquez, senior economist at the International Business Forum. “Companies are using the slowdown as a moment to restructure, and AI is at the center of that transition.”

A Sharp Reversal from Pandemic Hiring

The latest round of job cuts marks a sharp reversal from the massive hiring spree that followed the pandemic, when consumer demand surged and labor markets tightened.

But now, weak sentiment in Europe and Asia, combined with cautious U.S. consumers and rising capital costs — has pushed corporations to reevaluate growth plans.

Amazon, which recently announced more than 10,000 additional layoffs across logistics and administrative roles, said automation and efficiency improvements were allowing the company “to do more with less.”

Similarly, UPS confirmed plans to reduce its global workforce by 5%, citing lower shipping volumes and the integration of new AI-driven logistics tools.

Meanwhile, Nestlé and other major food producers have cut marketing and support staff in Europe and North America as consumer spending shifts toward cheaper, private-label goods.

AI and Automation Accelerate Structural Change

At the heart of the global retrenchment is the rapid integration of artificial intelligence into business operations, from customer service and accounting to manufacturing and logistics.

Tech giants like Google, Meta, and Microsoft have been leading this transformation, but non-tech industries are now following suit.

“We’re seeing AI reshape employment far faster than policymakers anticipated,” said Dr. Ahmed Rahman, a labor economist at Oxford University. “It’s not just replacing routine jobs, it’s altering how decisions are made and how companies organize themselves.”

According to a recent McKinsey survey, 43% of global executives say AI implementation has already led to workforce reductions, and nearly two-thirds expect more cuts by the end of 2026.

Consumers Turn Cautious, Leaders Turn Defensive

Economic data from the OECD and World Bank suggest that consumer confidence in major economies has fallen to its lowest point since early 2023. Inflation has cooled but remains high enough to erode purchasing power, while borrowing costs continue to weigh on small businesses and households.

That mix of weak spending and high costs has left executives facing tough choices.

“This is not a short-term correction,” said Jean-Paul Agnès, CFO of a Paris-based retail conglomerate. “It’s a realignment — one where human labor becomes more strategic, and machines handle the rest.”

Workers and Unions Push Back

The layoffs have sparked protests and legal challenges in several countries. In Germany, union representatives at Amazon and Siemens have demanded retraining guarantees for displaced workers. In the United States, labor advocates are urging Congress to consider legislation that would require companies to disclose when AI replaces human labor.

“It’s not anti-technology,” said Rachel Greene of the AFL-CIO. “It’s about transparency and accountability. Workers deserve to know if their jobs are being phased out by a machine.”

Outlook: Efficiency vs. Employment

Analysts warn that the current wave of restructuring may deepen inequality between firms that can afford advanced automation and those still reliant on human labor.

Yet for investors, the pivot toward AI and leaner payrolls has been well received, with several major stock indices climbing even as layoffs make headlines.

“The world is entering a new productivity cycle,” said Morgan Keane, strategist at Barclays. “Companies are betting that technology will save more than it costs, but in the short term, that means real human pain.”