Companies Cut Thousands of Jobs Amid AI Push
Earnings-season layoffs from Microsoft, Barclays, Schaeffler and others reflect cost cuts tied to artificial intelligence and shrinking markets.
Updated on Nov. 3, 2026 in Employment
Live Poll
Do you trust large companies to treat workers fairly when they cut jobs?
Companies announced thousands of job cuts during the recent earnings season, with mentions of layoffs in news reports reaching their highest level since May in October. Schaeffler AG said it will eliminate 3,460 roles in Europe, while Microsoft is offering buyouts to 60,000 workers.
Why it matters
Job-cut mentions tied to AI and cost reduction signal a shift as the growth cycle that followed the Covid pandemic and the 2022 high-inflation period winds down. Earnings growth is expected to be more subdued in 2027 and 2028.
Microsoft is offering buyouts to 60,000 workers, a quarter of its staff, and Netflix is cutting headcount by 6 percent. News-report mentions of job cuts hit their highest level since May in October, but the extraction does not show whether that pace will continue.
The players
Microsoft Corp.
A global technology company whose shares rose slightly after it announced job-cut plans, including buyouts offered to 60,000 workers.
Barclays Plc
A British multinational bank that is cutting 5,000 jobs by using artificial intelligence to reduce costs.
Schaeffler AG
A German automotive and industrial parts manufacturer that said it will eliminate 3,460 roles in Europe.
Volvo Car AB
A Swedish automaker whose shares plunged after it deepened job cuts in response to a shrinking market in China.
PayPal Holdings Inc.
A global digital payments company whose shares rose slightly after it announced job-cut plans.
The details
Barclays Plc is cutting 5,000 jobs through the use of artificial intelligence, and Volvo Car deepened its cuts in response to a vanishing market in China, affecting 2,500 workers. PayPal and Microsoft shares rose slightly after announcing their plans, while Schaeffler and Volvo Car shares slipped or plunged.
Timeline
Since the end of the Covid pandemic and the high-inflation period of 2022, a rapid revenue and earnings growth cycle has been ending.
In May, job-cut mentions in news reports peaked before reaching a new high in October.
Last Tuesday, Schaeffler AG announced it would eliminate 3,460 roles in Europe.
Earnings growth is expected to be more subdued in 2027 and 2028.
Market Landscape
The current wave of job cuts marks the close of the rapid revenue and earnings growth cycle that followed the Covid pandemic and the 2022 high-inflation period. Companies are now restructuring around AI and softer demand, and earnings growth is projected to slow in 2027 and 2028.
Workers at affected firms face buyout offers, reduced headcount, and job eliminations that may change household income plans. Shoppers and customers may see service changes as companies restructure around AI.
The takeaway
Track job-cut announcements alongside earnings guidance, since slowing growth in 2027 and 2028 could shape hiring decisions for workers and households alike.
Further reading
Explore more employment trends shaping global hiring and layoffs.
Source note: This article includes information reported by BusinessMirror.
Live Poll
Do you trust large companies to treat workers fairly when they cut jobs?
