This year will be remembered for many things…and layoffs will, unfortunately, likely be one of them.

UPS is cutting 48,000 workers. Amazon is laying off 30,000. Paramount and Target are each eliminating 1,000. US companies conducted 13.8 million layoffs and discharges in 2025 as of August, up from 3.5 million in May, and a 4.6% jump from August 2024. Some of these companies are replacing workers with AI, while others are responding to the economic volatility caused by the government shutdown, interest rates, and tariffs. Economists shared with HR Brew what recent layoffs might signal about the state of the labor market and economy.

What is going on? These RIFs may not be a sign that a recession is around the corner, but rather a “weird mishmash of factors,” said Elizabeth Renter, senior economist at NerdWallet. “When layoffs signal an economic downturn…they’re broad based and they’re across industries, and according to the data that we have—which is lacking, admittedly—there wasn’t red flags that they were heading northward and broad based across industries,” Renter said.

Is AI a red herring? When companies cite AI as a reason behind layoffs, it doesn’t necessarily mean the tech is currently changing the way they conduct business, according to Zhao.

For more on what recent layoff announcements mean for HR, keep reading here.—MC

Talent acquisition has become HR’s poster child for AI disruption.

Recruiters now have a wealth of AI-powered tools at their fingertips to help streamline their job, from sourcing candidates to scheduling interviews and screening candidates. But, according to a new LinkedIn survey, many recruiters aren’t taking full advantage of all that AI can do for their jobs—beyond productivity gains.

“Power users” wanted. Just 34% of the more than 1,000 recruiters based in the US and UK surveyed by LinkedIn described the majority of their colleagues as “AI power users,” meaning they’re using the technology to restructure their workflows and help them better deliver on business goals. Another 47% said their recruiter colleagues are “practitioners,” solely using AI to boost their productivity.

Focus on the human. Recruiters who want to increase their AI use should focus on enhancing the human elements of their jobs.

For more on how recruiters can become AI power users, keep reading here.—PM

Michelle Chang saw the start and end of the pandemic at two of the companies most associated with remote work. During 2020, she was the CFO of Microsoft Teams. In 2024, as masks became a rarer sight and return to office mandates ticked up, she became the CFO of Zoom.

CFO Brew spoke with her about her career.

This interview has been edited for length and clarity.

As we’re seeing more return to office mandates, how are you thinking about that trend for Zoom?

We’re a company that is deeply rooted in, believes in hybrid. I think you see some companies swinging the pendulum, especially in the Seattle area—it’s a hot topic right now with Amazon and Microsoft. But from a Zoom perspective and a personal belief perspective, I think there’s a healthy balance in that. Sometimes you are at your most effective when you’re at home, in the groove, getting that deep work done. And then there are times where the interactions with your coworkers and the face-to-face meetings and the feeling part of something is also deeply important. And so Zoom and I [are] deeply aligned with, “let’s find the balance between the two dialogues.”

For more from this conversation with Chang, keep reading on CFO Brew.—JK

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