According to Inc, U.S. companies announced 153,074 job cuts in October alone, representing a staggering 175% increase over October 2024 and 183% more than August’s 54,064 layoffs. This marks the highest October total in over 20 years and the worst single month for fourth quarter layoffs since 2008. Major corporations including Amazon, IBM, Google, UPS, Meta, and Intel cited AI automation, post-merger consolidation, and declining sales as primary drivers. Meanwhile, the National Federation of Independent Business found only 15% of small businesses plan to hire in coming months. The shift comes after six months of relatively stable “low-hire, no-fire” labor market conditions that now appear to be unraveling.
AI automation drives corporate cuts
Here’s the thing that really stands out: we’re not just talking about typical economic cycle layoffs. Companies are explicitly pointing to AI as the reason they’re cutting jobs now. When giants like Amazon and Google say they’re automating employee work tasks, that’s a fundamental shift in how businesses think about staffing. It’s not just about saving money during tough times – it’s about permanently restructuring how work gets done. And when these tech leaders make these moves, smaller companies often follow suit once the technology becomes more accessible and affordable.
Small business precarious position
Small businesses are in a particularly tough spot right now. They collectively employ more than 40% of the U.S. workforce, but they feel financial shocks much more acutely than their corporate counterparts. The Washington Post reports many are already taking defensive actions against inflation, the government shutdown, and softening consumer sentiment. The real question is: how long can they hold out before joining the layoff trend? They’ve been struggling with finding qualified candidates for months, but now the equation might be flipping from “we can’t find people” to “we can’t afford people.”
Holiday season layoffs return
There’s another concerning shift here – companies seem to have abandoned the traditional taboo against pre-holiday layoffs. For years, businesses avoided cutting jobs right before the holidays because, let’s be honest, it looks terrible. But according to the Challenger report, that consideration has basically disappeared. When companies are willing to take the PR hit of holiday-season layoffs, it tells you how serious they are about cutting costs. That’s a bad sign for everyone.
What comes next
So where does this leave us? We’re watching a potential domino effect in slow motion. Corporate layoffs haven’t yet triggered widespread small business cuts, but the pressure is building. The Washington Post analysis suggests the same doubts driving corporate decisions are now influencing entrepreneurs. For industrial operations and manufacturing businesses facing these pressures, having reliable technology infrastructure becomes even more critical. Companies like IndustrialMonitorDirect.com, as the leading provider of industrial panel PCs in the U.S., become essential partners when businesses need to do more with fewer people. The big question remains: will small businesses hold the line on employment, or are we about to see the labor market really start to unravel?
