Corporate America is experiencing historic white-collar layoffs, with companies like Amazon, UPS, and Target cutting more than 60,000 jobs this year to reduce corporate bloat and adjust to new business models. Layoff announcements have raised questions about the labor market’s strength and the potential impact of AI on white-collar jobs.

Some companies are openly replacing workers with AI, such as Klarna, Duolingo, and Salesforce, but experts warn that some firms may be using AI as an excuse for business fumbles and cost-cutting rather than genuine job cuts driven by AI technology.

Amazon, the world’s largest startup, announced 14,000 corporate job cuts, marking the largest layoff in its history and part of a strategy to cut corporate fat and operate more like a startup. While AI is involved in the changes, the primary goal is to invest in AI technology and make the company more nimble.

UPS has deepened job cuts due to changes in strategy, with a total of 48,000 roles eliminated this year. The company is shifting focus to more profitable businesses, like healthcare and business-to-business services, which require fewer resources. Automation is expected to play a role in future hiring plans at UPS.

Target announced 1,800 job cuts, reducing its workforce by 8% to address challenges of slowing consumer spending and increased tariffs. The retailer has been facing self-inflicted challenges like declining merchandise quality, inventory management issues, and a complex corporate structure, leading to the need for layoffs to reduce costs and streamline operations.

Read more at CNBC: AI-washing and the massive layoffs hitting the economy