Walmart, Microsoft, Disney Slash Jobs As Trump Tariffs, AI Push Corporate America Into Layoff Mode

Corporate America is experiencing a surge in layoffs as companies respond to economic pressures from President Donald Trump’s tariff policies and artificial intelligence adoption reshaping workforce needs.

What Happened: Procter & Gamble Co. PG revealed Thursday it will eliminate 7,000 jobs over two years, representing 15% of its non-manufacturing workforce, reported CNBC. Microsoft Corp. MSFT cut 6,000 positions globally in May, followed by an additional 300 layoffs this week, totaling approximately 3% of its workforce.

Walmart Inc. WMT reduced 1,500 positions across technology and e-commerce divisions, while The Walt Disney Co. DIS cut several hundred employees worldwide from film and television units. Citigroup Inc. C announced 3,500 job cuts in China, primarily affecting IT services.

Amazon.com Inc. AMZN eliminated about 100 positions in its Kindle and Goodreads divisions, adding to previous cuts across devices and services units. Nike Inc. NKE reduced technology division staff, shifting work to third-party vendors.

See Also: Robinhood Says Overnight Trading Spiked After Trump’s Tariff Surprise: ‘Retail Came To The Rescue’

Why It Matters: Companies are implementing cost-cutting measures against the backdrop of President Trump’s tariff policies, with several firms citing artificial intelligence as a factor in workforce decisions. Klarna CEO Sebastian Siemiatkowski told CNBC in May that the fintech company reduced headcount by 40%, partly due to AI investments.

Microsoft's CFO Amy Hood recently told investors the company was focused on "building high-performing teams and increasing our agility by reducing layers with fewer managers." CEO Satya Nadella had earlier indicated that between 20% to 30% of the company's code was now being written using AI tools.

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