For much of 2025, the U.S. labor market was characterized by a “no hire, no fire” dynamic meaning companies were reluctant to expand hiring, but workers still benefited from job security. Amazon, UPS, and other large employers recently announced major job cuts, however, suggesting that this stalemate may be shifting toward a more unsettled era. Amazon revealed 14,000 planned layoffs tied to increased automation and AI investments, while UPS reported a workforce reduction of about 48,000 compared with a year earlier.
The article warns that these large‐scale layoffs mark a potential turning point: employers are cutting jobs due to several pressures including AI adoption, economic uncertainty, and slowing business growth. Although the nationwide unemployment rate remains relatively low, job openings have dropped, and labor analysts say that workers who do lose jobs may face greater difficulty finding new roles than in recent years.
