Franchise News
United States job cuts hit a 20-year high as AI reshapes industries. While automation drives layoffs, franchising offers new opportunities for displaced workers seeking control and stability.
A new study indicates that United States companies cut more than 150,000 jobs this month, the most positions cut in October in over two decades.
Generally, the U.S. job market sees an increase in positions as the holidays near, with seasonal and temporary jobs ramping up in areas like retail, food service, hospitality, warehousing and logistics. But Amazon announced this week that it will lay off 14,000 corporate workers (cuts which could wind up being the largest in Amazon’s three decades) in addition to the nearly 50,000 jobs dropped by UPS in 2025.
Conducted by outplacement firm Challenger, Gray & Christmas Inc., the new study states that the October cuts are the most significant since 2003, as the rise of the smart phone was beginning to take hold, upending the way business is conducted fast.
What’s in play this time and how can it impact franchises?
Like smartphones before it, the brisk onset of AI is continually shaking up the way American work gets done.
Overall, the U.S. has lost more than one million jobs in 2025 (the most since COVID radically altered the work landscape five years ago). Recent U.S. Bureau of Labor Statistics numbers indicate that AI could take a particularly quick hold in the computing, business/financial, architectural/engineering and legal sectors.
Historically speaking, as jobs disappear amidst layoffs, franchising has generally highlighted a road forward for those looking to invest in and take more control of both their futures and careers.
While the food industry continues to experiment with ideas like robotics and automation in an effort to simplify repetitive kitchen tasks and streamline processes, AI is typically utilized for two reasons: the quick delivery of data and improvement of overall work efficiency.
While franchised restaurant chains have begun attempting to incorporate AI as part of a more convenient drive-thru experience, there’ve been hiccups.
But using AI to deliver reams of data insights has proven to be an invaluable tool when it comes to identifying trends, delivering more accurately-targeted marketing efforts while improving digital ad optimization, potentially boosting overall business.
In terms of improving services like scheduling and inventory management, AI can have a positive impact on the work experience while enhancing productivity.
On the customer side, AI-generated data can help franchised businesses better personalize the services offered to their customer base. It can also double as a much quicker way to assess areas for improvement as assessed via customer feedback and reviews. Chatbots and virtual assistants can handle ideas like customer inquiries and even reservations, simplifying processes while improving the overall guest experience.
Like most tech, the onset of AI is progressing quickly in a largely unabated fashion.
Even with the holiday package shipping season approaching, AI seems to be at least partially responsible for 2025 cuts in the warehousing and logistics sectors (as evidenced by significant recent cuts at both Amazon and UPS).
While speculation tends to vary, some studies indicate that AI could eliminate more than 100 million jobs, especially in the entry-level or low wage sectors, over the next 10 years.
But while areas like computing seem to face imminent peril, the franchising world continues to provide options for the independent-minded entrepreneur looking to take control of their futures and career.
Read the original article here.
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