Record Profits Fuel Layoffs Despite Hiring Recovery

Layoff Momentum Despite Record Profits

According to Globe St, US companies continued to announce significant layoffs in 2025, even as corporate profits remained near historic highs. Leaders in technology, logistics, and public sectors have eliminated thousands of roles, suggesting that rising job cuts are not solely tied to pandemic-era overhiring but also to deeper changes in how businesses operate.

Firms like Amazon and UPS are making large workforce reductions, while analysts note accelerated adoption of technologies like artificial intelligence is reshaping staffing needs. Retail and public sector employers have also cut aggressively, citing restructuring and operational changes as key drivers.

Broad-Based Impact Across Sectors

Record profits have not translated into job security. Instead, sectors like technology and logistics—often credited with growth during the pandemic—are now reducing headcount in response to structural shifts. In 2025, technology firms cut 154,445 jobs, up 15% year-over-year. Warehousing and logistics lost over 95,000 positions. Retail and services announced substantial layoffs, largely driven by store closures and market pressures.

• The public sector announced over 308,000 job cuts in 2025, a massive jump from the previous year.
• Retail job cuts more than doubled, up 123% from 2024.

What’s Next

Despite an apparent rebound in hiring and modest growth in total private employment, companies remain focused on long-term productivity—and that often means fewer jobs. This shift is having ripple effects beyond employment, including a noticeable reduction in office space demand from major tech firms adjusting to leaner teams. With corporate profits hovering above $4T and ongoing shifts in business models, the trend of job cuts may persist through 2026 as companies recalibrate for efficiency amid uncertain economic signals.