Mass Layoffs Signal Shift Away From "No Hire, No Fire" Era in Job Market
The job market's fragile balance of "no hire, no fire" may be coming to an end as major companies like Amazon and UPS announce significant layoffs. For most of 2025, economists described the job market as a period where workers could count on job security but job seekers faced slim prospects.
However, recent announcements from tech giants and retailers suggest that this era is drawing to a close. Amazon recently announced 14,000 job cuts, citing a shift towards artificial intelligence, while UPS reduced its workforce by 48,000 over the past year. Paramount Skydance, the owner of CBS News, also shed jobs as part of an effort to cut costs in the entertainment and media company.
Target notified a state employment agency in Minnesota that it plans to lay off more than 800 workers in January as part of a broader corporate restructuring. The retailer announced last week that it would cut 1,800 corporate positions, trimming its global workforce by about 8%.
These mass layoffs come as the Federal Reserve scrutinizes the labor market for signs of weakness, with Fed Chair Jerome Powell citing concerns about slower hiring in announcing the central bank's first interest-rate cut of 2025. The announcements from Amazon and UPS could signal that the Fed has good reason to be worried.
According to John Challenger, CEO of outplacement firm Challenger, Gray & Christmas, "No question that this is a shift, and it does seem to me it signals that 'no hire, no fire' is a thing of the past." The layoffs are not just limited to tech companies; employers across the U.S. have cut nearly 950,000 jobs this year through September, the largest number of layoffs since 2020.
The slowdown in job growth has been sharp in recent months, with average monthly payroll gains of roughly 27,000 between May and August - down from average gains of nearly 123,000 per month between January and April. The ADP National Employment Report recently said payrolls at private employers declined by 32,000 jobs in September.
While the nation's unemployment rate remains low, experts warn that the latest layoffs could lead to a rise in long-term unemployed people, who have been searching for work for more than six months. This could be particularly challenging for workers who lose their jobs due to a lack of job openings.
The impact on the labor market is multifaceted, with employers citing factors such as artificial intelligence and economic uncertainty. Amazon's investment in AI tools allowed the company to trim its human workforce, while UPS cited tariffs and shipping declines from Amazon as reasons for its layoffs.
As Americans become increasingly pessimistic about the job market, experts warn that job security may be more precarious. The shift away from "no hire, no fire" could have significant implications for workers and the overall labor market.
The job market's fragile balance of "no hire, no fire" may be coming to an end as major companies like Amazon and UPS announce significant layoffs. For most of 2025, economists described the job market as a period where workers could count on job security but job seekers faced slim prospects.
However, recent announcements from tech giants and retailers suggest that this era is drawing to a close. Amazon recently announced 14,000 job cuts, citing a shift towards artificial intelligence, while UPS reduced its workforce by 48,000 over the past year. Paramount Skydance, the owner of CBS News, also shed jobs as part of an effort to cut costs in the entertainment and media company.
Target notified a state employment agency in Minnesota that it plans to lay off more than 800 workers in January as part of a broader corporate restructuring. The retailer announced last week that it would cut 1,800 corporate positions, trimming its global workforce by about 8%.
These mass layoffs come as the Federal Reserve scrutinizes the labor market for signs of weakness, with Fed Chair Jerome Powell citing concerns about slower hiring in announcing the central bank's first interest-rate cut of 2025. The announcements from Amazon and UPS could signal that the Fed has good reason to be worried.
According to John Challenger, CEO of outplacement firm Challenger, Gray & Christmas, "No question that this is a shift, and it does seem to me it signals that 'no hire, no fire' is a thing of the past." The layoffs are not just limited to tech companies; employers across the U.S. have cut nearly 950,000 jobs this year through September, the largest number of layoffs since 2020.
The slowdown in job growth has been sharp in recent months, with average monthly payroll gains of roughly 27,000 between May and August - down from average gains of nearly 123,000 per month between January and April. The ADP National Employment Report recently said payrolls at private employers declined by 32,000 jobs in September.
While the nation's unemployment rate remains low, experts warn that the latest layoffs could lead to a rise in long-term unemployed people, who have been searching for work for more than six months. This could be particularly challenging for workers who lose their jobs due to a lack of job openings.
The impact on the labor market is multifaceted, with employers citing factors such as artificial intelligence and economic uncertainty. Amazon's investment in AI tools allowed the company to trim its human workforce, while UPS cited tariffs and shipping declines from Amazon as reasons for its layoffs.
As Americans become increasingly pessimistic about the job market, experts warn that job security may be more precarious. The shift away from "no hire, no fire" could have significant implications for workers and the overall labor market.
. It seems like major companies are finally waking up to the fact that AI is changing the game 
. I mean, Amazon's 14,000 job cuts are no joke! It's not just tech giants anymore - retailers like Target and UPS are also feeling the pinch 
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. The slowdown in job growth is real, and it's not just about tech companies laying people off 
. This could have serious implications for long-term unemployed folks who've been searching for work for months 
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. It's time for employers to think about how AI is going to impact their workforce and adapt accordingly 
. I'm not saying it's all doom and gloom, but we need to be prepared for a shift in the job market 
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. It's about time companies start getting ruthless and cutting jobs left and right. The job market is way too saturated with people, and it's only natural that some are going to get left behind 
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. And let's be real, artificial intelligence is coming for us all - might as well start downsizing now 
. People need to toughen up and get out there already! If you can't hack it in this economy, then maybe you shouldn't be here 
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. We've been hearing so much hype about job security and how it's a thing of the past... and now it's finally being shown that even big players like Amazon are cutting jobs 
. Those guys have been struggling for months and it's not looking good. We need more support systems in place to help them get back on their feet 
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. It's like, we're still figuring out the whole automation thing... and suddenly companies are using it as an excuse to cut jobs? I guess that's just the way of the world now 
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. Maybe it'll prompt us to rethink our priorities and find more sustainable ways to grow businesses 
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. amazon and ups are just the tip of the iceberg, i think we'll see more of this in the future 
. but at the same time, maybe this shift away from job security will push companies to innovate and grow faster 
. It's like we're living in some kind of dystopian nightmare where jobs are scarce and security is non-existent 
it's crazy how fast the game has changed. i'm not saying it's all bad - innovation is cool and all, but job security should still be a thing 
especially those who've been searching for work for months 
. It's been coming for a while now and I think it's high time we accept that automation and AI are taking over some jobs 
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. We need to support them and make sure they're getting the help they need 
.
and UPS laying off 48k is like, what's next, layoffs in space? 
it seems like the whole "no hire, no fire" thing was just a myth all along. anywayz, with these big layoffs and unemployment rate on the rise, i'm just over here thinking what's next for my job security 
I think this is a super worrying sign for anyone who's been trying to find or keep a job in the past year or so 
. Plus with AI taking over some jobs, it's like we're seeing the beginning of a whole new way of working that's kinda scary 
. It's like, I'm all for companies doing what it takes to stay afloat, but sometimes we need to think about the human cost of all this 
. I'm a bit worried that we're gonna see more long-term unemployed people, who've been searching for work for months... it's a big problem that needs addressing 
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. Remember when you had to worry about getting laid off from your job every five minutes? It was stressful, but at least you knew what to expect, right? Now, with AI taking over and companies trying to cut costs, it feels like the rug's been pulled out from under our feet 
, but sometimes I wish we could go back to that "no hire, no fire" era where workers had some job security. It was still imperfect, but at least it was predictable, you know? Now, with these massive layoffs, it's like we're seeing the writing on the wall – AI is taking over, and humans are being left behind 
... all these mass layoffs can't be good for people's mental health 
. It's not just tech companies either, employers across the board are letting go of staff, which is concerning 
. But still, it's disheartening to see people losing their jobs 
i mean, some people might lose their jobs but others might get promoted 
. Now it's like, "Uh, what's going on?" 
these mass layoff announcements are kinda scary. like, i know companies need to cut costs and all, but 14k jobs gone in one day? that's crazy. and now the fed is looking into it... i hope people who lose their jobs find new ones soon 