Labor Hoarding Fades As Corporations Cut Costs, Citing AI Advances And Tariff Uncertainty

Benzinga

Major U.S. companies are resuming layoffs as the post-pandemic “labor hoarding” era ends, driven by profit pressure, tariffs, and automation optimism. Investors have rewarded cost-cutting moves, lifting shares of Amazon, Target, and UPS, though economists warn job growth could soon turn negative.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Corporate America is ending its pandemic-era firing freeze as companies announce major

00:07layoffs amid a softer job market, according to the Wall Street Journal. Economists say

00:12the trend marks a shift away from labor hoarding when firms retained staff due to post-pandemic

00:17hiring challenges. The shift is driven by profit pressure, higher tariffs, and optimism

00:23about automation. Investors have largely rewarded cost-cutting moves with shares of Amazon,

00:28Target, and UPS rising following layoff announcements. Economists warn that increased layoffs could

00:35push overall employment growth into decline as data releases remain paused during the

00:39government shutdown. For all things money, visit Benzinga.com.

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