The latest report from CCTV states that multiple global industries are currently experiencing a new wave of layoffs. Over the past two months, leading companies in various sectors such as global automotive, pharmaceuticals, aviation, energy, and consumer goods have successively announced layoff plans, with the scale of job cuts ranging from thousands to tens of thousands. Among them, United Parcel Service (UPS) cut 48,000 jobs to reduce expenses, Amazon laid off 30,000 employees, the world’s largest sea freight forwarder Kuehne+Nagel announced layoffs, and Nestlé also announced 16,000 job cuts.
Giants across multiple global industries have successively announced layoffs in the past two months
The automotive industry has become the hardest hit sector in this round of layoffs. French media reported earlier this month that Renault Group plans to implement a “voluntary departure” program, cutting 3,000 jobs globally. In September, US Ford Motor Company announced that due to weak demand for electric vehicles in the European market, it would cut 1,000 jobs at its Cologne plant in Germany by early 2026, marking the first time the cuts involve the vehicle production department.
The supply chain end is also under significant pressure. German automotive parts giant ZF announced layoffs of 7,600 people at the beginning of this month; another industry giant, Bosch, plans to cut approximately 13,000 positions by the end of 2030. Analysis points out that the transition to electrification has led to an excess of traditional internal combustion engine jobs, while weak market demand in Europe and rising costs have further intensified layoff pressures.
The global pharmaceutical industry is also entering a phase of structural adjustment. Denmark’s Novo Nordisk announced in September that it would cut 9,000 jobs globally, about 11% of its total workforce. Companies like Merck & Co. and Moderna have also successively rolled out layoff plans this year. Industry analysts state that challenges such as patent expirations and intensified competition are reasons for the pharmaceutical industry’s layoff wave.
Furthermore, since September, Germany’s Lufthansa, US energy giant ExxonMobil, food giant Nestlé, coffee chain Starbucks, and Dutch brewer Heineken have also announced layoffs. US consulting firm Accenture announced that it had laid off over 11,000 employees in the past three months and warned that if employees cannot adapt to the demands of artificial intelligence, there will be more layoffs in the future.
A report from CNBC stated that many companies announced layoffs citing “shifting to artificial intelligence to improve efficiency,” but critics believe that AI is becoming an excuse for layoffs by some large companies, and the time when corporate use of AI leads to large-scale job cuts has not yet arrived.
Renowned US think tank RAND Corporation
Announces global layoffs of over ten percent
According to US media reports on the 23rd, the renowned US think tank RAND Corporation will cut 11% of its staff globally, with one-third of the laid-off personnel belonging to the company headquarters, citing “insufficient workload” as the reason.
According to a report by the Los Angeles Daily on the 23rd, a RAND Corporation spokesperson confirmed plans to lay off 192 people globally. Based on a notice submitted by RAND to relevant California authorities on the 21st, the positions to be cut include accountants, policy analysts, economists, engineers, and political scientists.
It is understood that RAND Corporation is headquartered in Santa Monica, California, with offices in Boston, Pittsburgh, and Washington D.C. in the US, three offices in Europe, and one office in Australia. Founded in 1946 as a non-profit organization, RAND has a long history in national security policy advisory. This think tank operates four US federally funded research and development centers and relies heavily on federal funding for its revenue.
US retail giant Target
Announces cutting 1,800 headquarters positions
On the 23rd local time, US retail giant Target Corporation stated that it would cut a total of 1,800 positions at its US headquarters. This is reportedly Target’s largest layoff in a decade. As of the close on the 23rd, Target’s stock price rose slightly by 0.24%.
An email sent to Target’s internal employees showed that the planned cuts involve 1,800 positions, including laying off 1,000 people and eliminating 800 vacant positions, equivalent to about 8% of its global corporate workforce. It is reported that these layoffs primarily target Target’s US headquarters located in Minneapolis, Minnesota, and do not involve its retail stores, supply chain, or overseas branches. Currently, all employees at Target’s US headquarters have been notified to work from home next week, and employees affected by the position cuts are expected to be notified on the 28th.
Target’s latest financial report released in August this year showed that the company’s sales have declined for three consecutive quarters, and it expects annual sales to also decrease this year. Currently, Target’s stock price has fallen approximately 65% from its historical high in 2021, and its stock has dropped about 30% this year. In contrast, the stock price of its retail competitor Walmart has risen about 123% over the past five years, while Target’s has fallen 41% over the same period. Michael Fiddelke, who is set to become Target’s CEO next February, stated that these layoffs are not for cost-cutting purposes but to reorganize the structure and improve efficiency.
Facebook parent company Meta
Plans to lay off approximately 600 people in AI department
According to multiple US media reports on the 22nd, tech giant Meta, the parent company of Facebook, plans to lay off approximately 600 people in its artificial intelligence department. This is seen as a move to streamline structure and enhance operational efficiency after a period of large-scale expansion.
Reports indicate that these layoffs primarily target teams focused on AI products and infrastructure and did not affect employees of the newly established TBD lab, which had previously recruited many top AI researchers from competitors like OpenAI and Apple with high salaries.
The report stated that these layoffs aim to address corporate bloat resulting from earlier mass hiring to rapidly advance AI projects. It is reported that in recent months, Meta has been actively adjusting its AI strategy to keep pace with competitors, investing tens of billions of dollars in infrastructure projects and talent recruitment. After the layoffs, Meta’s AI department will have approximately 3,000 employees. Affected employees may be reassigned to other positions within the company.
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