NEW YORK CITY, New York: Global corporations are cutting tens of thousands of jobs as weak consumer sentiment, new leadership shakeups, and the accelerating adoption of artificial intelligence reshape business priorities.

Blue-chip firms from Amazon to Nestlé and UPS have announced deep cost reductions this month, reflecting growing caution amid slowing demand and rising automation.

A Reuters tally shows U.S. companies have disclosed more than 25,000 job cuts in October, excluding UPS's 48,000 layoffs announced earlier this year. In Europe, the total exceeds 20,000, led by Nestlé's 16,000-position reduction last week.

With the U.S. government still shut down, preventing the release of nationwide employment data, investors are closely watching these announcements for signs of economic softening.

"Investors are asking, what does this mean? What's the overall picture since we can't see it?" said Adam Sarhan, CEO of 50 Park Investments in New York. "Cuts like those at Amazon tell me the economy is slowing down. You don't have mass layoffs when the economy is strong."

Many firms are targeting white-collar and administrative roles rather than factory or retail positions, a sign of how AI tools are reshaping workforces.

Amazon said it will cut up to 14,000 corporate jobs, with some reports suggesting as many as 30,000 positions could go. Target, Procter & Gamble, and Carter's have also announced layoffs as they streamline operations or adjust to U.S. tariff pressures.

At Target, the cuts affect 8 percent of corporate staff. Carter's said that its 15 percent office workforce reduction follows the rising import duties imposed by President Donald Trump.

According to KPMG's September survey of U.S. executives, projected AI investment rose 14 percent since early 2025 to an average of US$130 million per company over the next year, while 78 percent of leaders said they are under pressure to prove AI investments are saving money and increasing profits.

"The most at-risk occupations are entry-level roles that can be easily automated," wrote Bank of America economists. Yet so far, job losses remain limited to specific sectors, as information, finance, and professional services continue to show net job gains.

"I'm reticent to say it's AI just yet," said Allison Shrivastava, an economist with Indeed Hiring Lab. "It has the potential to impact the labor market, but I don't think we're seeing that strong an impact right now."

Even as high-profile layoffs dominate headlines, economists say the broader job market remains in a "low-hiring, low-firing" phase — companies are quietly shrinking by not replacing roles rather than cutting aggressively.

Payroll firm ADP estimated only 14,250 new jobs in the four weeks ending Oct. 11. Economists warn that if firings accelerate, it could undermine already fragile consumer confidence and further strain the U.S. economy, which is strained by tariffs and inflation.

"I describe this as a ‘hold-your-breath' environment," Shrivastava said. "‘Low-hire, low-fire' almost makes it feel like we're in a new equilibrium where companies are just holding their breath, trying to figure out what's next."