S&P 500 restructurings rising 20% amid AI and layoffs
The number of S&P 500 companies unveiling broader restructurings this earnings season is on course to rise by around 20% from a year earlier, mainly because of AI and efforts to save money.
Names like Disney and Schaeffler AG are making headlines with major layoffs, and October saw the highest layoff references since May.
Investors split as Europe trims jobs
Investors aren't all on the same page: stocks for companies like PayPal and Microsoft ticked up after their layoff news, while Volvo shares dropped.
Over in Europe, job cuts are steady, but governments are also trimming public sector jobs; for example, the Netherlands plans to cut 25,000 civil servant roles.
Experts say these moves show post-pandemic growth is cooling off, and so far, AI productivity gains have stayed within tech companies.