This has been a busy week for layoff news:

The Wall Street Journal reports that white collar jobs are disappearing by the tens of thousands.

We’ve seen something like this go down before. Companies announce layoffs, wait for the market to soften, then initiate huge stock buybacks. Over the past few years, this has become a pretty predictable pattern.

However, something different is happening now… and understanding the distinction could define what you do next.

Why is this such a big deal?

Amazon isn’t just a top MBA employer – it’s often THE top employer for product management roles, ops leadership programs, and tech-adjacent business roles. When the company that’s hired hundreds of MBAs every year goes lean, everyone in your cohort is competing for a shrinking pool of alternatives.

The data shares the stark reality:

According to Alex Hamilton at Live Data Technologies, Amazon's corporate workforce has been shrinking since October 2022:

This mirrors what we’re seeing at Microsoft (-6%), Google (-6%), and Oracle (-7.6%).

Amazon's cuts are especially significant for MBAs because of the company's historical role as a top hirer.

A similar trend that worth noting is that major employers are planning to grow their businesses…. without adding headcount.

The WSJ reports that:

Companies are flattening management layers, tasking AI with routine work, and keeping headcount lean... indefinitely.

As Aakash Gupta recently shared, there are actually two distinct layoff stories playing out simultaneously:

Amazon, Meta, and Microsoft are cutting jobs not due to declining revenues…. but to free up capital for GPUs and AI infrastructure.

This isn't crisis management during a downturn – it's strategic reallocation from human capital to infrastructure. As Aakash says, “The math is brutal: every percentage point of headcount reduction funds another batch of H100s.”

Companies like UPS, Nestlé, Ford, and Target are cutting jobs because AI is working. AI-driven tools are driving productivity – without people. As Aakash says, “The math finally works.”

What got us here won’t work going forward. In other words, the MBA recruiting process that has worked for the last decade or so won’t always crack today’s market.

Big companies (and major MBA employers) are doing more with less, running with lean teams, and leveraging AI to fill the gaps.

If you’re navigating the job market as an MBA student or grad, here’s what you should consider:

Build a list of 40-60 companies across multiple sectors. This isn't optional anymore.

Look where MBA hiring – or hiring in general – is still strong across segments like:

These sectors need talent – regardless of AI.

Additionally, look for companies at the following stages that still need great talent:

If you’re looking to pivot and can't change role, industry, AND land at a dream company... pick two out of these three. Then, get the third one on your next move.

The traditional MBA recruiting paths assumed that big companies would always be there…but that assumption isn’t such a sure bet.

Tech + business skills can still win if you can bridge the two. So, hone what AI can't replace: relationship building, creative problem-solving, and cross-cultural leadership.

Show you understand how AI transforms your functional area and how to leverage these tools for productivity. This doesn't mean you need to code or become a data scientist…but it does mean you must understand how AI impacts your domain.

Learn to work with AI – rather than against it.

Big companies have traditionally been the visa sponsors. They have legal teams to handle the H-1B process, budgets for immigration lawyers, predictable hiring cycles, and infrastructure for sponsorship.

When these companies freeze hiring, international students lose their primary pathway to staying in the U.S. (and paying back those loans!)

So, revise your action plan:

There are no "safe" jobs at companies like Google, Amazon, and Microsoft. Visibility, adaptability, and storytelling really matter. It helps to future-proof your career (and plan for future disruptions).

Consider building:

The question isn't whether you'll be affected by this shift in the market – you will be. The question is whether you'll position yourself to thrive or be displaced.

Find the pockets of growth where your MBA actually gives you an edge.

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