Layoffs are happening across the board, with more than 153,000 jobs already cut from major names like Ford and UPS. 

That's a 175% jump from exactly one year ago, making this the worst October for job cuts since 2003. 

Nothing about this screams (or even whispers) that it's good for the economy or the markets. Yet until this week, stocks have been pushing higher, not lower.

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Amazon

Amazon (NASDAQ:AMZN) laid off around 14,000 employees earlier this year, mainly in HR, Alexa, and cloud computing. Now, reports say the company is considering another 30,000 cuts in the months ahead. You'd expect that kind of move to spook the market.

But here's what's interesting: these aren't seasonal warehouse jobs. These are long-term, career-level roles, and they're being cut before the holiday season. That tells me AMZN is leaning into something bigger: operational efficiency.

Back in April, AMZN hit a low of around $160. Then it ran into earnings — and blew them out — tagging a new year-to-date high in the process. It's continued to build on that strength.

So, while headlines focus on how many jobs are being lost, I'm watching how AMZN is positioning itself ahead of the biggest retail stretch of the year. A leaner footprint and stronger margin profile could be the catalyst that keeps this chart moving higher.

Microsoft

Microsoft (NASDAQ:MSFT) also announced new layoffs this quarter, part of an ongoing wave that has reduced headcount across multiple divisions throughout 2023.

But again, the story isn't just in the job cuts. It's in the chart.

MSFT saw lows back in April, then rallied hard through the summer, hitting $550 in early August. It pulled back, then reclaimed that $550 level again just last week. That kind of price action doesn't happen unless the market believes in what's driving it.

For me, the standout is its seasonal pattern. Over the next 31 days, MSFT has rallied 90% of the time over the past 10 years, going into mid-December. Even in 2021, the one year it didn't, the drop was less than 1%. Over the past three years, the average return for this stretch has been 5.5% or more.

That's why MSFT is high on my list. The pattern is strong. The chart supports it. And while the layoffs are tough to see, they're part of a broader shift that leadership believes is needed to stay competitive.

And from what I'm seeing so far, the markets agree. 

Intel

Intel (NASDAQ:INTC) is in the middle of a profound restructuring. The company has already eliminated thousands of jobs and is reportedly on track to cut up to 24,000 roles as part of its multi-year turnaround.

Now that seems like it'd be a dramatic hit to the stock, but I don't see panic in the chart. Not even a little bit. 

INTC hit lows around $18 earlier this year. And last week, it tagged a high of $41.53 — a double in just a few months. That move isn't happening because Wall Street feels sorry for Intel. It's happening because they're streamlining operations and cutting overhead where AI and automation can pick up the slack.

And a lot of these layoffs are hitting middle management — the kinds of roles that AI and automation are starting to replace across the board. It's never easy news, especially for the people affected. 

But from a market perspective, INTC is making some tough calls to get leaner and redirect resources toward what's next. And based on the moves we're already seeing in the charts, traders are already starting to price that in.

Layoffs aren't good news — for anyone. But in the market's eyes, companies that make tough decisions early often come out stronger on the other side.

As traders, we focus on what's really happening in the market—not what the news networks say it should be doing. And right now, the charts are clear:

• Amazon is building strength into the holiday window.
• Intel's momentum is picking up steam.
• Microsoft has a seasonal pattern that I trust and a chart that confirms it.

So, while the media focuses on the cuts themselves, I'm watching the price action and the patterns forming underneath.

That’s where the opportunity first shows up. 

Editorial content from our expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.

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