Brace yourself: the American job market is bleeding at a pace not seen since the 2020 pandemic.
According to the Daily Mail, a staggering report from Challenger, Gray & Christmas reveals a 140% spike in layoffs compared to last year, with over 800,000 job cuts announced in the US this year alone.
This wave of layoffs has been building, with the tech sector taking the hardest hit. In the first seven months of the year, tech companies slashed 89,251 jobs.
The numbers are grim and accelerating. In July alone, US employers cut 62,075 jobs, a sharp jump from 25,885 in the same month last year. That’s also a 29% increase from June’s figure of 47,999 job losses.
Behind these cuts? Artificial Intelligence (AI) and economic uncertainties like tariff concerns. AI alone was blamed for over 10,000 job reductions last month.
Tariff worries have also cost nearly 6,000 jobs this year. As global trade tensions simmer, businesses are tightening belts, and workers are paying the price.
Major players aren’t spared. Amazon is trimming its corporate staff to pivot toward AI, planning a $100 billion investment in data centers and further billions into startup Anthropic.
Intel dropped a bombshell, announcing plans to cut 25,000 roles in 2025. This marks their second significant reduction in just two years. Microsoft joined the fray, cutting about 4% of its global workforce in July, which translates to roughly 9,000 jobs across various teams and regions.
The impact of AI isn’t just numbers—it’s a structural shift. As one industry leader put it, “AI is going to replace literally half of all white-collar workers.”
Historically, mass layoffs hammered manufacturing, but now they’re targeting college-educated earners. High-to-middle-class professionals are no longer safe from the chopping block.
This shift is hitting recent graduates hard. Male graduates aged 22 to 27 with bachelor’s degrees face unemployment rates higher than the general population.
These layoffs signal a deeper problem: efficiency-driven tech is outpacing human labor. For a free-market economy to thrive, we must adapt without government overreach distorting recovery.
So, what can you do? Focus on skills that AI can’t replicate—think creative problem-solving or niche expertise—and build a cash buffer now. Consider low-cost index funds or dividend stocks to weather economic storms.
The job market may be brutal, but history shows resilience pays off. Stay frugal, upskill relentlessly, and invest in yourself—because no one else will.