When Amazon announced plans to cut 14,000 corporate jobs this week, its shares surged by 11.6%. This move demonstrates that mass layoffs are no longer alarming investors. Instead, they are now seen as a sign of corporate agility and profitability. The development marks a pivotal shift in what economists are calling the end of the post-pandemic 'labour hoarding' era, as companies move from prioritising employee retention to aggressive cost-cutting, a trend that Wall Street appears to be rewarding with soaring stock prices.
From 'No Hire, No Fire' to Widespread Layoffs
Throughout most of 2025, the job market was characterised by a 'no hire, no fire' mentality—fewer new jobs but relatively stable employment for those already employed. That delicate balance is now breaking down.
Amazon, which employs approximately 350,000 people globally, announced a plan to reduce its workforce by 14,000 as part of a push to 'operate like the world's largest startup.' Analysts expect the total layoffs at Amazon could eventually reach 30,000 in the coming months.
UPS has been even more aggressive, eliminating around 48,000 positions so far in 2025, including 14,000 in management roles. Retail giant Target plans to cut 1,800 corporate roles, while Paramount Skydance will slash around 1,000 jobs. Even tech giants like Meta, heavily invested in AI, are conducting layoffs within their AI divisions.
Data from Challenger, Gray & Christmas underscores this trend. In the first three quarters of 2025, companies announced 946,426 job cuts—an increase of 55% from the previous year and the fifth-highest total in the firm's 36-year history. Meanwhile, hiring plans have plummeted to their lowest level since 2009, suggesting the labour market is entering dangerous territory. Economists warn that this slowdown reflects waning consumer demand and a shift towards safeguarding profit margins rather than expanding headcount.
Wall Street Celebrates the Job Cuts
Wall Street has responded positively to this wave of layoffs. Amazon's stock jump lifted the S&P 500 index after the company's profits exceeded analysts' expectations. Amazon reported more than $35 billion in profit in the first half of 2025 and plans to spend over $120 billion on AI initiatives this year. Despite these hefty investments, Amazon insists the layoffs are about becoming leaner and more efficient.
Across corporate America, the message is clear: fewer workers and higher profits are what please investors, even when companies are performing well. Analysts suggest this enthusiasm signals a return to pre-pandemic investor priorities, where efficiency and profitability take centre stage over expansion.
Many executives justify the layoffs by framing them as part of long-term transformation and agility initiatives, rather than short-term austerity measures. The language of 'modernisation' and 'restructuring' is now common, even for companies already reporting high profitability.
The Human Cost of Efficiency
During the pandemic recovery, companies learned painful lessons about rapid workforce reductions. After firing staff in 2020, many struggled to rehire when demand surged again, leading to the so-called 'labour hoarding' mindset. That cautious approach appears to have now been abandoned.
Firms are shifting their focus from preserving talent to demonstrating financial discipline. Workforce reduction is increasingly seen as a way to fund expensive AI projects and to reassure shareholders that profit margins will remain high.
Critics warn that this strategy risks eroding institutional knowledge and damaging employee morale. While reducing staff may boost short-term profits, it could weaken a company's resilience during future growth cycles.
Labour experts argue that companies best positioned to navigate technological change are not necessarily those automating the fastest, but those maintaining flexible, skilled teams capable of adapting when automation falls short. For workers, the message is clear: the era of job security is giving way to a focus on efficiency, cost-cutting, and shareholder returns.
