Amazon, UPS, and Target have all laid off thousands of workers this year. What does this mean for the economy and the economy's ability to grow? And why are these companies laying off their workers? Today, we talk about why these are happening and why the Democratic Party is to blame.
00:00:08.400Chex slashes 45% of workforce, blames new realities of AI. Meta, layoffs. Amazon, another 30,000. Target, 1,800.
00:00:19.600Rob, I think you got some of the videos on this one. Why don't we play the UPS one, 48,000 for the year so far?
00:00:24.440When you're seeing these types of things, we talked about this briefly yesterday.
00:00:28.560To the average person, this looks like, oh, my God, this is horrible. Look at all the stuff that's going on. Go ahead and play this clip, Rob.
00:00:35.760Also new tonight, UPS has announced that they've cut 48,000 jobs so far this year.
00:00:41.800That announcement made on their quarterly call this morning.
00:00:45.280The company said their 2025 revenue is more than $21 billion, but that's partly because they've consolidated to create what they call a more efficient operating model.
00:00:56.06014,000 workers were primarily on the management level.
00:01:00.520On top of that, they reduced their operational workforce by about 34,000 positions and closed daily operations at 93 sites.
00:01:09.900Tom, this looks bad, but is it really bad? What's going on here?
00:01:12.800No, this is natural. And what's happening natural, I'll give you three points on it.
00:01:16.200Point number one, we are having a pretty good economic year.
00:01:20.260Wall Street's having a good year. And when you come to the end of the year, what do you do?
00:01:23.820You make budgets. Your company makes budgets. You require everybody to take a look at it and to bring you their ideas, their thoughts, their creativity for next year.
00:01:32.460And what are we going to budget? What are we going to not?
00:01:34.600And a lot of companies are discovering, look, UPS is competing with Amazon, if you want to think of it that way.
00:01:40.080And every time Amazon automates a warehouse, UPS has to cover.
00:01:44.340It's like sailing. You have to cover the tack. You have to cover what your competitor is doing.
00:01:47.720So number one, the layoffs are coming as they realize these efficiencies and then they're going to return that profit to the shareholders.
00:01:56.240That's what's happening. Point one. Point two, we're in a transition in America.
00:02:00.420There's more efficiency happening as AI happening. And I'd like to go, Rob, can you go to the link I gave you?
00:02:05.560We used it last week. Let's take a look now. And Bill also want to know what you think about this.
00:02:09.820Take a look at this. What's going on here right now, these layoffs are the responsibility of the Democrats that have inhibited the progress on the president's agenda.
00:02:20.300And before you tell me, oh, you're just all pro-Trump, go look at this.
00:02:24.480Look at the trillions of dollars in investments that are happening in the United States.
00:02:28.480These are new jobs, new manufacturers that were being held up by Congress or being held up because people like Chuck Schumer are getting in the way of the president's agenda.
00:02:38.100The president's trying to encourage companies to build factories with new jobs, tomorrow's jobs here, so that as UPS gets more efficient and they lay off jobs for this, there's places for the American worker to go.
00:02:51.360And so I put this at the feet of the Democrats.
00:02:54.400By the way, the Democrats have their own unions yelling at them, saying, oh, what happened to my job?
00:02:59.300I'm the union, supported you during the election. Where's our jobs going?
00:03:02.660And so you get the unions actually harping at the Democrats, which is a fun irony.
00:03:06.080But what's happening with these layoffs, the market likes to see cost consolidation.
00:03:12.320So the stock market goes up and companies are making layoffs in the name of efficiency and things.
00:03:18.180But the president's agenda to bring more jobs to America and $1.5 trillion of investment just since March of this year, the total number is bigger.
00:03:28.800It's like $5, $6 trillion over five years.
00:03:31.140And so I see the two-sided coin here, and I think the Dems need to get out of his way because the Trump effect is happening, and these people need new jobs as America evolves forward.
00:03:42.280And yes, AI is a part of it, but AI is not a villain.
00:04:19.200It wipes out the industrial factory jobs.
00:04:21.420So, you know, like every 100 years, a new disruptive technology comes out, wipes out half the job market, and then people get jobs they didn't even realize that, like, that weren't going to be needed in the future.
00:04:30.260So we're not even imagining the jobs that are going to be created.
00:04:32.880People are thinking it's going to have to be UBI or something.
00:04:34.980But, no, I think we're going to have a whole new job market that we're not even fathoming right now.
00:04:38.760Yeah, I mean, look, like Tom said earlier, if some of these companies, as they're coming into the fourth quarter, they're cutting the cost to show up.
00:04:48.200You know, you see, we just laid off this many people.
00:08:24.380All the unions represent the truck drivers.
00:08:26.540They're scared to death of autonomous vehicles, driving vehicles, and they want to unionize distribution centers, and they want to do that.
00:08:33.640So the unions are going to come out that way.
00:08:35.640On the other side, you've got AWS, and AWS just had an outage.
00:08:41.640And so obviously they need to be a little bit more stout if they're going to be the backbone of so much telecommunications infrastructure behind companies using AWS.
00:08:50.120We had a major outage just two weeks ago, right, or less than that, where for a whole day, look how many services.
00:08:57.600And they say, oh, these apps were down.
00:08:59.460Those apps are providing critical services.
00:09:42.980Well, we would look at, we want to diversify within reason.
00:09:46.100The problem is that when you get on these cloud networks, as you know, and you get so pregnant on them, so to speak, it's hard to move off of it.
00:12:41.100So are you bullish still on AWS keeping the lead, or are you bullish on the fact that somebody could come in and disrupt and take over AWS?
00:12:55.880And I think this was a relatively innocent scare the heck out of you-know-what moment, at least from what I've observed at Fannie and Freddie.