Corporate America Faces Wave of Layoffs Amid Cost Cuts

While Elon Musk has concluded his fiscal austerity measures that led to significant federal job reductions, the trend of large-scale layoffs continues to impact various sectors of corporate America.

Businesses are confronting mounting pressures to reduce expenses amid global economic instability exacerbated by President Trump’s tariff initiatives. Numerous companies have responded with price increases, while workforce reductions emerge as another strategy for cost containment.

Growing trade tensions have raised alarm over the overall health of the U.S. economy and its job market. Although the April employment statistics exceeded expectations, a recent report from ADP indicated that private sector hiring has hit its lowest level in over two years.

While many firms have refrained from offering specific justifications for the layoffs — typically merging them into broader cost-reduction strategies or growth blueprints — leaders in the tech sector have started identifying artificial intelligence as a significant factor influencing their hiring practices and workforce adjustments.

Klarna’s CEO, Sebastian Siemiatkowski, disclosed last month that the fintech company has reduced its employee count by 40%, partly due to AI investments. Similarly, Shopify’s CEO, Tobias Lütke, informed his team in April that they must demonstrate the necessity of additional staffing, citing AI as a valid alternative for many tasks.

The following is a summary of recent layoffs across notable companies:

The maker of Pampers and Tide, Procter & Gamble announced on Thursday its plans to eliminate approximately 7,000 positions, representing around 15% of its non-manufacturing workforce, over the next two years as part of a restructuring effort.

CFO Andre Schulten shared during a presentation that the company aims to make overarching changes across its portfolio, supply chain, and corporate structure.

The specific regions or divisions affected have not been clarified by the company.

Microsoft announced last month that it would reduce its workforce by roughly 6,000 employees, equating to around 3% of its total workforce across all departments and locations.

A spokesperson for Microsoft noted that a primary objective of the cuts was to streamline management layers. The company had implemented a smaller round of performance-based layoffs in January, which were notably not linked to performance metrics in the May cuts.

Citigroup declared on Thursday that it intends to cut approximately 3,500 jobs in China.

The layoffs primarily target the information technology services division, responsible for software development, testing, and maintenance, with some roles being relocated to Citi’s other technology hubs.

As CEO Jane Fraser leads Citi through a major reorganization aimed at enhancing profitability and stock performance, the bank has lagged behind its competitors in recent years. Last year, Citi revealed a more extensive plan to minimize its global workforce by 10%, totaling around 20,000 jobs.

According to a report from Reuters last month, Walmart is set to eliminate around 1,500 positions as part of its operational simplification efforts. The impacted teams include global technology, operations, U.S.-based e-commerce fulfillment, and Walmart Connect, the advertising division.

As the largest private employer in the U.S., with around 1.6 million staff, CFO John David Rainey acknowledged in a Finance Newso interview last month that customers could anticipate price hikes starting this summer due to rising tariffs.

Cybersecurity firm CrowdStrike revealed last month plans to let go of 500 employees, which represents about 5% of its total staff.

CEO George Kurtz noted in a securities filing that this decision is largely influenced by changes brought about by artificial intelligence.

“We are navigating through a market and technological inflection point, where AI is transforming every industry, accelerating threats, and evolving customer requirements,” he commented, detailing the move as part of the company’s “evolving operating model.”

The Walt Disney Company announced earlier this week that it intends to eliminate several hundred jobs globally across various sectors. This decision will impact teams involved in film and television marketing, publicity, casting, and development.

According to a spokesperson, the layoffs are part of a broader initiative aimed at enhancing operational efficiency.

The online education platform Chegg disclosed last month that it will lay off 248 employees, or around 22% of its workforce. These cuts are occurring as AI-enhanced tools like OpenAI’s ChatGPT gain traction in the education sector.

CEO Nathan Schultz stated during the company’s May earnings call that these layoffs are part of a financial strategy, with anticipated savings of $45 million to $55 million this year, and an additional $100 million to $110 million next year.

Amazon stated in May that it would cut around 100 jobs within its devices and services division, which encompasses products such as the Alexa voice assistant, Echo devices, Ring doorbells, and Zoox robotaxis.

An Amazon spokesperson clarified that this decision is part of ongoing efforts to improve team and program efficiency.

This announcement comes as CEO Andy Jassy has been actively pursuing cost-cutting measures within the company. Since the start of 2022, Amazon has reduced its employee base by approximately 27,000.

Warner Bros. Discovery will be reducing its workforce by fewer than 100 employees, according to reports circulating this week.

Sources indicate that no specific network or channel is expected to face greater cuts than others.

These layoffs follow the company’s restructuring into two main divisions: a global linear networks division and a streaming and studios unit, which was finalized in the first quarter.

— Finance Newso’s Amelia Lucas, Jordan Novet, Anniek Bao, Melissa Repko, Ryan Browne, Annie Palmer, and Reuters contributed to this report.