The American labor market is showing deep and troubling fissures, with US-based companies announcing the most job cuts for October in over two decades. The grim statistics paint a picture of an economy under severe strain, battered by corporate cost-cutting measures and the continued economic turmoil from policies enacted by the Trump administration.

Year-to-date, job cuts have alarmingly surpassed the 1 million mark, a number not seen since the height of the pandemic. The numbers are weak no matter how they’re spliced and signal a chilling effect on the workforce. In a double blow, US employers have simultaneously announced the fewest hiring plans since 2011, according to new data. Seasonal hiring plans through October have plummeted to their lowest point since the firm Challenger, Gray & Christmas began tracking the metric in 2012.

“It’s possible with rate cuts and a strong showing in November, companies may make a late season push for employees, but at this point, we do not expect a strong seasonal hiring environment in 2025,” said Andrew Challenger, senior vice president of the global outplacement and business coaching firm.

This wave of layoffs is crashing across multiple sectors. In recent weeks, Target Corp. announced it would eliminate 1,800 roles, representing about 8% of its corporate jobs in a major restructuring. E-commerce giant Amazon.com Inc. said it would slash 14,000 corporate positions. This follows a stark warning from its CEO that the increasing use of Artificial Intelligence will inevitably shrink the company’s workforce.

The corporate carnage continues with Paramount Skydance Corp., which axed 1,000 workers. Other household names like Starbucks Corp., Delta Air Lines Inc., CarMax Inc., and Rivian Automotive Inc. have also been culling their corporate ranks. Molson Coors Beverage Co. cut deeply, shedding about 9% of its salaried workforce.

The reasons cited by these corporations are varied, but a common thread of prioritizing profits over people is evident. United Parcel Service Inc. (UPS) revealed it has cut its operational workforce—including its iconic delivery drivers and package handlers—by 34,000. This figure is a staggering 70% more than the company had projected earlier this year. UPS pointed directly to its increased use of automation for the cuts, which it claims has driven up productivity.

For many other companies, the layoffs are a tactic to protect profit margins from the added costs of tariffs imposed by the Trump administration. These levies have put immense pressure on US companies, from multinational corporations to small businesses. While economists predicted these tariffs would drive up consumer prices, many employers have instead absorbed the costs, choosing to make up the difference by cutting labor and other business expenses. The American worker, once again, is paying the price for policy decisions made in Washington.

These mounting job-cut announcements risk fueling widespread anxiety about the health of the labor market. The timing is particularly devastating for the newly unemployed, who now face a diminished hiring environment just as the nation’s social safety net is being frayed. The job cuts coincide with a severe, Trump-induced crisis that substantially cut SNAP benefits for the nation’s poorest families, despite ample funds being available to continue paying the full benefits.

The advent of proven AI technology has also played a significant role. The Trump administration, which has spearheaded the adoption of AI in the workplace, has done little to establish programs or offer support for the growing number of workers whose roles have been replaced by AI, leaving them to navigate a hostile job market alone.

This reality on the ground appears at odds with the perspective from the financial elite and government officials. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon expressed optimism, suggesting that headcount at the largest US bank will probably remain “steady or rise” as it rolls out artificial intelligence, provided “we do a good job.” Dimon claimed the bank would redeploy workers whose jobs were impacted by the technology, stating that AI will reduce human workloads but “it will also create jobs.”

Federal Reserve Chair Jerome Powell echoed a similarly detached sentiment, recently characterizing the situation as merely a “very gradual cooling” in the job market. For the more than one million Americans who have received a pink slip this year, that “cooling” feels more like a deep freeze.