U.S. public companies have cut their white-collar workforces by 3.5% over the past three years, marking a fundamental shift in corporate philosophy that views fewer employees as a path to faster growth. One in five S&P 500 companies now employ fewer people than they did a decade ago, according to employment data-provider Live Data Technologies.
The reductions extend beyond typical cost-cutting measures and coincide with record corporate profits at the end of last year. Amazon CEO Andy Jassy told employees Tuesday that AI will eliminate certain jobs in coming years, while Procter & Gamble announced plans to cut 7,000 positions to create “broader roles and smaller teams.”
Bank of America reduced its workforce from 285,000 in 2010 to 213,000 today while revenues climbed 18% over the past decade. Managers have faced particularly steep cuts, with their ranks falling 6.1% between May 2022 and May 2025. Companies are flattening organizational structures and pushing remaining employees to handle larger workloads as executives track revenue per employee more closely.