Image Source: Pixabay

Nearly 2 million Americans have been unemployed for 27 weeks or more, according to recent federal data, and layoffs are growing daily as companies look to slash overhead.

Amazon said this week it would cut 14,000 corporate jobs, with plans to eliminate up to 10% of its white-collar workforce. United Parcel Service said it had reduced its management workforce by about 14,000 over the past 22 months, and Target is to cut 1,800 corporate roles.

Earlier this month, Rivian Automotive, Molson Coors and General Motors all announced white-collar job cuts.

All of this is happening with financial conditions among the easiest in history, and corporate profits clocking record growth. Financial markets are expecting more central bank easing, but it’s unclear how that will stem the rising unemployment. See, Tens of thousands of white-collar jobs are disappearing as AI starts to bite:

Even as the economy grows, hiring has weakened, with economists expecting slower job-creation this fall. In such an environment, companies are becoming choosier—and both experienced white-collar workers and new college graduates seeking their first jobs are getting squeezed.

Mike Hoffman, chief executive of the growth advisory consulting firm SBI, said in the past six months he has cut his software-development team by 80% while productivity has surged. “We have someone managing clusters of agents that are doing coding,” he said. “Our AI writes its own Python.”

Investors are pressuring companies to streamline operations, Hoffman said, seeking head-count reductions as steep as 30%. Executives should ask themselves whether they can do so and whether it is the right thing to do, he said.

On Monday, the online-learning company Chegg said it would cut 388 jobs globally, about 45% of the workforce, as it pivots to an AI model that automatically answers students’ questions.

Meanwhile, opportunities for front-line, blue-collar or specialized workers are growing.

While pausing hiring for consultants and managers, laying off staff in retail and finance, and deploying AI to do work in accounting and fraud monitoring, companies describe shortages of trade, healthcare, hospitality and construction employees.

Manufacturing and processing are one thing; humanoid robots are a tougher nut to crack.

The 1X Neo can do the dishes, clean the kitchen, even fold laundry. WSJ’s Joanna Stern spent time with the humanoid—and its creator—to see what it can really do and how much still requires a human operator’s help. Here is a direct video link.

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