US companies fired their employees last month by the most since early 2023: Here’s your Evening Briefing https://t.co/VwxdInnLgu ...

President Donald Trump's tariffs are biting more and more into companies' bottom line. The barrage of import taxes this year put in place by the Trump administration has contributed to an uncertain business environment due to their on-again, off-again nature. Employers, as a result, are hesitant to add more workers or expand their operations. More companies instead are moving to shrink their headcount, according to the latest survey from the Institute for Supply Management released on Tuesday. That trend ...

Core Insights - Apple Inc. has laid off dozens of sales workers in the United States, marking a rare job cut for the company despite its record high revenues expected to reach close to $140 billion in the December quarter [1][4] - The layoffs are part of a strategy to streamline the sales workforce and eliminate overlapping responsibilities, with a shift towards third-party resellers for sales [5][6] - Affected employees include account managers for schools, government agencies, and major businesses, as well as staff at briefing centers for institutional meetings [3][12] Company Actions - Apple confirmed the job cuts and stated that the changes affect a small number of roles, while also continuing to hire for new positions [2][4] - Laid-off employees have until January 20 to secure another position within the company or will receive a severance package [4] - The layoffs included long-time managers and employees with 20 to 30 years of service, particularly impacting the government sales team [6][9] Industry Context - Apple typically relies less on layoffs compared to other tech companies, with CEO Tim Cook previously stating that layoffs are a "last resort" [9][10] - The technology sector has seen widespread layoffs, with companies like Amazon and Meta also announcing significant job cuts recently [11]

Employee Relations - A troubling empathy gap exists between leadership and employees regarding layoffs [1]

Layoff announcements skyrocketed toward the end of 2025, as generative AI and economic tightening pressure corporations to restructure their workforces. Many companies are cutting costs by trimming middle management and, in certain industries, eliminating entry level roles that can be replaced by AI. But layoffs aren't the only thing experts are concerned about.Generative AI is speeding up how people work, but that efficiency can come at the trade off of maintaining skills and rising up the corporate ladder ...

Core Insights - Target is implementing a billion-dollar renovation strategy to improve its performance after experiencing a challenging period, with the incoming CEO expressing dissatisfaction with current results and aiming for full operational potential [1][8] Financial Performance - In the third quarter, Target's comparable sales fell by 2.7%, which was worse than analysts' expectations of a decline of 2.06%. However, adjusted earnings per share were $1.78, surpassing the forecast of $1.73 [2] - The decline in sales was largely attributed to a significant drop in September, while August and October showed relatively flat performance [2] Strategic Initiatives - Target plans to increase its annual capital expenditures from $4 billion to $5 billion to invest in store remodeling and refreshing its merchandise assortment and floor plans, marking the most significant changes in years [3] - The company is focusing on enhancing the in-store experience to counteract declines in both transaction numbers and sizes [5] Consumer Behavior - Target shoppers are prioritizing essential holiday items, such as Halloween costumes and candy, over decorative items, indicating a shift in consumer spending habits [4] - Economic pressures, including inflation and layoffs, have led to Target lagging behind value-oriented competitors like Walmart and Costco, with Target's stock price dropping approximately 35% since the beginning of the year [6] Technological Integration - Target announced an integration with ChatGPT for its app, aiming to enhance the shopping experience by allowing multiple item purchases in a single transaction and offering fresh food products [7][8]

Core Insights - Playtika Holding Corp. is undergoing significant layoffs, with estimates suggesting up to 700 employees will be let go, representing about 20% of its workforce as of the end of last year [1][2] - The company has faced challenges in growth despite being profitable, with revenue declines in 2023 and 2024, and a notable drop in profit by 42% in the first nine months of 2025 [3][4] - Playtika's market capitalization has decreased significantly from $11 billion at its flotation in early 2021 to $1.5 billion currently, reflecting an 85% loss in value [4] Company Operations - Playtika develops mobile games, including casual and casino games, and has experienced multiple rounds of layoffs over the years, with the most recent occurring after a previous reduction of nearly 100 employees in June [2] - The company has a total revenue guidance for 2025 of $2.7-2.75 billion, indicating a growth of 5.9-7.9% compared to the previous year, alongside an adjusted EBITDA of $715-740 million [4] Market Analysis - Twelve analysts cover Playtika's stock, with eight holding neutral views and four being positive, and the average price target is 50% above the current stock price [5]

Layoff Trends - US companies' impending mass layoff notices surged in October to among the highest levels on record [1] Source - Data is based on a tally by Federal Reserve Bank of Cleveland researchers [1]

Core Insights - Recent layoffs across major companies indicate a significant shift in the business environment, particularly influenced by advancements in AI technology [1][3] - The scale of layoffs is unprecedented, with companies like Amazon, Target, UPS, Verizon, and Nestlé announcing substantial job cuts, totaling over 100,000 jobs [2][3] Company Layoffs - Amazon plans to eliminate 14,000 jobs, with further reductions anticipated as AI is integrated for efficiency [2][3] - Target is cutting 1,800 corporate jobs, marking its largest layoff in a decade, citing excessive layers and the need to accelerate technology [2][3] - UPS has reported a staggering 48,000 job eliminations this year, while Verizon and Nestlé will lay off 15,000 and 16,000 employees, respectively [2][3] Economic Context - The recent wave of layoffs does not correlate with a significant economic downturn, as growth is expected to increase next year according to economists [2] - Traditional layoff seasons typically occur in December and January, suggesting that the current trend may be driven by factors beyond seasonal adjustments [2] AI Influence - The integration of AI is a primary driver behind the layoffs, with executives openly discussing the need for efficiency gains and reduced workforce [3] - Companies are adopting a "Human Capital Lite" model, where having fewer employees is increasingly viewed as a positive attribute among Fortune 500 CEOs [3]

Economic Pressure on Lower-Income Americans - Lower-income Americans are under significant pressure, and a halt in their spending could negatively impact the overall economy [1][2] - The economy is becoming increasingly bifurcated, with higher-income consumers continuing to spend while lower-income households are forced to pull back [2] Job Market and Layoffs - Private-sector data indicates weakness in the job market, with layoffs reaching the highest level for October in over 20 years, totaling over 150,000 jobs, a 183% increase from September [2][4] - ADP's report shows that businesses added 42,000 private-sector jobs last month, contrasting with a loss of 29,000 in September [2] Debt and Financial Stability - Lower-income consumers are nearing recession, facing high inflation at 3%, rising layoffs, and maxed-out credit cards [2] - Concerns are raised about delinquencies on subprime auto loans leading to losses for banks, indicating potential larger credit issues [4] Economic Outlook - El-Erian suggests that while there may be isolated economic accidents, systemic shocks are not anticipated, as the financial system is not fundamentally compromised [5] - The analogy of "cockroaches" in the credit system suggests that while there are issues, they may not indicate a broader systemic failure [5]