American Employers Slash 950K Jobs Through September as Labor Hoarding Era Ends

Corporate America’s firing phobia has flatlined. After years of cautious hiring and reluctance to downsize, US companies have cut nearly 950K jobs in just nine months — the fastest pace since the pandemic’s early chaos. The post-COVID “low hire, low fire” era that shielded workers amid talent shortages and inflation uncertainty is clearly over, as firms now pivot toward cost-cutting and efficiency.

• StarbucksSBUX
  , AmazonAMZN
  , and TargetTGT
  cut 0.9K, 14K, and 1.8K jobs, respectively — ending the talent-hoarding era as firms trim costs amid tariffs and AI hype.
• The government sector took the hardest hit with ~300K cuts, while tech and retail also suffered, with Southwest AirlinesLUV
  announcing its first large-scale layoffs ever.

The boomerang effect: Despite the surge in layoffs, about 5.3% of dismissed workers are being rehired by former employers — a sign that executives may be overestimating AI’s real capabilities. Companies are also learning that each $1 saved through cuts costs $1.27 once unemployment insurance and severance are factored in. Visier’s Andrea Derler concluded that “the idea that AI is replacing every job is still really not proven,” calling it a “very convenient explanation for layoffs.”