WASHINGTON: Large American corporations have begun scaling back their workforces, laying off around 52,000 employees in a bid to cool the US labor market, according to a report by the “Financial Times” citing informed sources.
Major firms across sectors — including Amazon and UPS — are cutting jobs as part of a broader effort to reverse the aggressive hiring seen during the COVID-19 pandemic. Analysts note that companies significantly expanded their staff during lockdowns, but ongoing economic uncertainty and growing concerns over the impact of artificial intelligence are now prompting widespread workforce reductions.
In 2025, Federal Reserve Chair Jerome Powell signaled the possibility of an early interest rate cut, describing inflation as “somewhat elevated” while noting that employment levels remain close to maximum. He characterized the current labor market as being in a “highly unusual equilibrium,” shaped by a sharp slowdown in both labor demand and supply.
Powell added that the relative stability of the unemployment rate and other labor indicators gives the Federal Reserve room to proceed cautiously as it reassesses the direction of US monetary policy.
