In a troubling sign for the U.S. economy, in just the last few weeks three major companies have announced or are preparing to announce thousands of job cuts. Procter & Gamble, Workday, Dow, CNN, Starbucks, Southwest Airlines, Microsoft, and Meta, the parent company of Facebook, are among those reducing their workforce. This second wave of layoffs comes during some tough times for the U.S. economy. Indeed, it contracted at an annual rate of 0.2% in Q1 2025.
These job reductions reflect a broader struggle within various sectors as businesses grapple with rising costs and shifting market demands. Procter & Gamble, the massive number two consumer goods corporation in the world, announced that cutting its workforce is a must to improve efficiency and speed. Notables from tech include announcements of layoffs from Workday and Microsoft. This underscores their newly tentative strategy as the market for technology services ebbs and flows.
It follows similar moves at other media companies, including CNN, to trim their workforces. They claim it’s more important than ever to adjust to changing viewer patterns and face revenue headwinds. Both Starbucks and Southwest Airlines are proactively moving to increase their productivity. They are leading the way by getting ahead of overwhelming consumer demand and pressure from the industry.
The data on the job market only adds to the picture of a precarious reality many American workers confront. Recent statistics show that U.S. filings for jobless benefits remained unchanged last week at 248,000, indicating a level of stability amidst the layoffs. The total of Americans collecting unemployment benefits rose by 54,000. For that week—the week ending May 31—the number was up to 1.96 million. This increase indicates that even if new claims are consistent, more people are having to depend on these benefits.
As we’ve noted often, there has been a historic plunge in the number of Americans quitting their jobs. This trend is perhaps most indicative of growing confidence in one’s job security. Conversely, layoffs are rising, a clear indicator that employer confidence has turned dour. Indeed, the U.S. has currently about one job open per unemployed worker. Further, this reflects an extremely tight labor market even as millions of layoffs continue in certain industries such as tech.
Instead, Google has gone a different route—one we’ve never seen before—by selectively handing out buyouts to a part of its workforce. This strategy is intended to avoid voluntary invites under cost-cutting plans that would involve layoffs—taking a common strategy to incentivize voluntary departures.
The four-week average, which is less volatile, has increased by 5,000 to 240,250. This increase emphasizes the contradictions of today’s labor market. Businesses large and small are adapting to economic adversity. The impact on jobs is the biggest worry for workers and legislators passionate about protecting jobs.
