Tech and Consumer Giants Announce Significant Layoffs Amid Economic Uncertainty
A shift is underway as companies move from hiring freezes to active workforce reductions. After years of maintaining payrolls despite economic uncertainty, major multinationals like Amazon, Verizon, and Nestlé are now announcing ample layoffs in response to a more volatile global landscape. This environment is characterized by trade tensions, the impact of previous tariff policies, and broader economic slowdowns.
Nestlé is undertaking a significant restructuring, planning to cut approximately 16,000 jobs globally. While the majority of these cuts will affect office-based roles, positions in production and logistics will also be impacted. This move is part of a larger efficiency plan aimed at streamlining internal organization, eliminating redundancies, and speeding up decision-making.Nestlé is also increasing its savings targets, signaling a focus on cost control rather than aggressive growth.
Amazon is preparing for its largest corporate layoff as 2022,potentially eliminating up to 30,000 office positions – roughly 10% of its corporate workforce. Affected areas include People Experience and Technology, Operations, Devices and Services, and Amazon web Services (AWS). CEO Andy Jassy is driving a reduction in bureaucracy and management layers, utilizing internal feedback mechanisms to implement operational changes. Amazon acknowledges that increased productivity through automation and AI is enabling these cuts. While AWS revenue grew 17.5% in the second quarter to $30.9 billion, it is currently growing at a slower pace than competitors Azure and Google Cloud.
Verizon recently joined this trend, announcing a major restructuring under new CEO dan Schulman. The company plans to reduce its non-union workforce by up to 20%, impacting over 13,000 employees. This restructuring aims to simplify the company’s structure, reduce costs, and improve competitiveness following two consecutive quarters of subscriber losses.The cuts will affect retail staff,customer service representatives,and some executive positions.
