Microsoft and Amex cut staff despite revenue growth

Microsoft offered voluntary buyouts to 60,000 employees in October. This happened just days after the company reported 19% year over year revenue growth for the quarter ending September 30. American Express and Barclays also announced 5% workforce reductions. These moves occurred while the financial services sector saw profits from resilient credit and consumer spending.

The cuts reflect a wider trend where companies are shifting headcount toward artificial intelligence projects. Daniel Zhao, chief economist at Glassdoor, explains that companies are reallocating resources rather than simply replacing humans with robots. He notes that it matters less if a job can be done by AI and more if the project fits the company's new strategy. Briana Taylor, a product marketing manager in Chicago, was laid off in June 2025 despite working on Microsoft's AI products and receiving a promotion. She calls AI a scapegoat for broader cost cutting.

Worker anxiety is climbing even as the overall pace of layoffs slows. The American Psychological Association surveyed 2,009 employed adults in the spring. Thirty two percent said they were concerned about losing their jobs in the coming months. That is up from 26% in 2025. Gallup reports that U.S. employee engagement fell to 29% in the third quarter of 2026. This is the lowest level since 2011. Glassdoor data shows employee confidence hit its lowest point in September before rebounding slightly in October.

Total layoff numbers have improved from last year. Through October, employers announced 617,189 job cuts. That figure is down 44% from the first 10 months of 2025, according to Challenger, Gray and Christmas. Tech, transportation, and food companies accounted for the biggest reductions. Jo-Ellen Pozner, an associate professor of management at Santa Clara University, says AI expectations are pressuring tech companies to show results. She argues that lowering costs is the primary way to do that in the absence of blockbuster new products.

The uncertainty is changing how employees behave. Sam Epperson, a tech sales worker in Colorado Springs, was told his team was behind on annual goals in early October. He closed deals worth $300,000 to bridge the gap. He was still laid off before the end of the month. Epperson says he felt safe until the letter arrived. Meanwhile, Bashel Lubarsky, a graphic designer in New York, was let go in late October. She had a promotion earlier in the year and believed her role was essential. She has been applying to jobs for over a year, even while employed, and says the current market feels harder than the pandemic era.

Economists point to signs of a slowly improving job market, including new job additions and steady unemployment rates. Zhao says consistent improvement is needed for workers to feel secure again. Until then, the gap between official stability and personal insecurity remains wide. Companies continue to trim staff to fund AI transitions, leaving many workers to wonder if their next move will also be cut.