Fortune 500: Record Profits, Fewer Jobs – What’s Behind the Shift?

(SeaPRwire) –   By: Christian Pierce

The 2026 Fortune 500 companies are on a roll, with record revenue, profits, and market cap. But there’s a catch: total headcount dropped for the second year, down 1% to 30.5 million. This is unusual, as headcount declines have typically happened during or after recessions since 1995.

The departure of some big employers played a part. Walgreens Boots Alliance, with 252,500 employees in 2025, left after being acquired. Nordstrom, with 41,000 employees, also dropped off. The 22 companies that left had 659,640 workers, while the 22 new ones employed fewer than half that number.

Incumbent firms’ headcount growth was minimal. Amazon added 20,000 employees, a 1.3% increase. Walmart’s headcount was flat, and UnitedHealth Group’s dipped by 10,000, or 2.5%. Retail and technology sectors saw headcount drops, while financials grew.

Large firms are outsourcing labor – intensive work and reaping tech productivity gains. Revenue and profit per employee are at record highs, but inflation – adjusted wages are flat. AI may push this trend further. New startups focusing on AI agents may not create as many jobs as traditional firms.

Author bio: Christian Pierce, a chief financial columnist and markets commentator with deep insights into business trends.