153,074 U.S. Job Cuts in October, With 31,000 Linked to AI: Workplace Shift Accelerates
Image Credit: Moises Ferreira | Splash
United States employers announced 153,074 job cuts in October, the highest total for that month in 22 years, with artificial intelligence playing a key role in many restructurings alongside cost pressures. The figure, tracked by outplacement firm Challenger, Gray & Christmas, lifted year-to-date layoffs above 1.09 million, a 65 per cent rise from the prior year. AI was cited in about 31,000 of these announcements – roughly a fifth – though analysts note overhiring from the post-pandemic boom as a deeper factor in some cases.
The October Layoff Surge: Major Cases and Figures
The month’s reductions hit technology, warehousing, finance and consumer sectors hardest, often targeting mid-level and administrative roles. Amazon confirmed around 14,000 corporate job losses on 28 October as part of a push to cut layers and prioritise AI-driven operations. The changes spanned human resources, devices and services units, with chief executive Andy Jassy emphasising cultural agility over pure cost trims in interviews with Fortune and CNN. Amazon shares climbed 1.2 per cent the next trading day.
Meta Platforms announced roughly 600 cuts on 22 October within its artificial intelligence teams, including the Fundamental AI Research lab and infrastructure groups, a spokesperson confirmed to CNBC. An internal memo described the moves as flattening hierarchies for quicker progress, even as Meta ramps up hires for its superintelligence lab.
Swiss-based Nestlé revealed plans on 16 October for 16,000 global redundancies over two years under its “Fuel for Growth” plan, including 12,000 white-collar positions, as new chief executive Philipp Navratil seeks automation to lift margins. The strategy aims to save one billion Swiss francs without curbing net hiring. Nestlé shares rose around 8 to 9 per cent in the sessions after.
These cases sit among tens of thousands of cuts linked to AI and automation themes in October, per Challenger breakdowns, while the full tally also reflects easing consumer spending and wage pressures. Federal labour data showed nonfarm payrolls growing overall, but warehousing and tech bore the brunt.
Dissecting AI’s Hand: From Efficiency Tools to Job Trims
Artificial intelligence sits at the core of these shifts, promising speed but prompting hard choices on staffing. Goldman Sachs estimates administrative and support roles have among the highest task exposure to AI, with roughly 46 per cent of current tasks in those professions potentially automatable, according to its 2023 Global Investment Research report, still cited in 2025 updates. Legal roles sit close behind at 44 per cent. Overall, the bank sees two-thirds of US occupations exposed to some degree of AI automation, with about one-quarter to one-half of the workload in those jobs at risk.
Company motives differ. Reports citing New York Times-reviewed internal documents claim Amazon aims to automate 75 per cent of warehouse operations by 2033 to avoid hundreds of thousands of future hires, a figure Amazon has described as an exaggerated picture, insisting robots augment rather than replace workers. Meta’s trim addresses rapid growth in its AI arm, freeing funds for generative tech. Nestlé views automation as vital for cost control in a tough market.
AI ranks second to general cost cuts in Challenger tallies. Goldman Sachs chief executive David Solomon has called the effects measured so far. A recent Goldman survey of bankers forecasts modest headcount dips of 4 per cent over the next year from AI, rising to 11 per cent in three years.
Research Eases Alarm: Limited Disruption So Far
Academic takes provide balance. A Yale Budget Lab paper from 1 October found scant signs of broad AI upheaval since ChatGPT’s 2022 launch, with losses heavier in low-AI fields than in exposed office roles. Brookings and MIT Sloan studies from early October show AI mostly boosting tasks and profits without shrinking headcounts. The Society for Human Resource Management, in late-October notes, flags generative AI’s task remixing but slow rollout due to ethics and skills hurdles.
Broader Effects: Widening Gaps and Office Pressures
The fallout squeezes white-collar lines and stokes fairness worries. Goldman models flag a potential half-point unemployment bump during the transition, hitting mid-skill desks and risking pay divides without swift retraining. Banks like JPMorgan Chase and Goldman Sachs deploy AI to ease back-office recruitment, per chief financial officers’ remarks.
On the economy, it hints at “jobless growth” – productivity up, jobs steady – which could mute spending. A CNBC report from 8 November tallies thousands displaced by AI in 2025 alone, pushing calls for skills like prompt crafting or ethics oversight.
Outlook: Faster Changes and Calls for Safeguards
Projections suggest quicker paces ahead, offset by fresh openings. Goldman Sachs sees about 25 per cent of work tasks automated by 2030, mostly in offices and law, but with productivity potentially birthing net gains if oversight roles emerge.
The World Economic Forum’s Future of Jobs 2025 report eyes 170 million new global jobs by decade’s end against 92 million lost, for a net 78 million rise – hinging on upskilling. IMF head Kristalina Georgieva has likened AI to a “tsunami” for 60 per cent of advanced-economy roles.
US states are stepping up: California tightened rules on AI in employment decisions effective 1 October 2025, while New York funds AI-specialised degrees and literacy programs, and Texas expands workforce training grants for emerging tech skills. As Solomon put it, economies adapt nimbly over time, yet AI’s clip calls for upfront planning to share the wins fairly.
This month’s tally maps a turning point where AI retools routines but tests old ways. For businesses and workers alike, it’s about gearing up for what’s next.
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