As U.S. corporate profits rise and the stock market hits new highs, investors are reaping the rewards. Yet beneath the surge, companies have cut nearly 1 million jobs this year — the most since 2020, when the pandemic slammed the economy. … Not everyone thinks AI is driving the recent bout of layoffs. Instead, the job cuts are more likely due to businesses recalibrating their needs after the pandemic, when many employers expanded and may have overhired, said Art Papas, the CEO of Bullhorn, a software company that works with recruitment and temporary agencies.
Companies feel more emboldened to cut workers now because it’s easier to find new talent than during the pandemic, when the labor market was tighter, he said. Papas also believes businesses that point to AI as a reason for layoffs are using it more as a buzzword.
“These companies announce layoffs and their stock goes up — it’s a perverse incentive to announce layoffs,” he noted.
Corporate profits at all time highs. Market economy rewards public actions of layoffs and no proof AI is really driving this recalibration.
hard not to get cynical. The truth is no free-market corporation exists to employ people. They exist to generate profits. But James what if there are no more workers, well unfortunately corporations no longer plan at the 15, 20 and 25 year markers it seems.
Quote Citation: Aimee Picchi, “Corporate profits are soaring even as layoffs mount. Economists call it a “jobless boom.” - CBS News”, November 6, 2025 / 8:13 AM EST, https://www.cbsnews.com/news/jobless-boom-ai-economy-labor-market-corporate-profits-layoffs/