diff --git a/src/cargo/core/compiler/job_queue/job_state.rs b/src/cargo/core/compiler/job_queue/job_state.rs
index 12c04258d3e..b3b2e896007 100644
--- a/src/cargo/core/compiler/job_queue/job_state.rs
+++ b/src/cargo/core/compiler/job_queue/job_state.rs
@@ -103,7 +103,7 @@ impl<'a, 'gctx> JobState<'a, 'gctx> {
     }
 
     /// See [`Message::Diagnostic`] and [`Message::WarningCount`].
-    pub fn emit_diag(&self, level: String, diag: String, fixable: bool) -> CargoResult<()> {
+    pub fn emit_diag(&self, level: &str, diag: String, fixable: bool) -> CargoResult<()> {
         if let Some(dedupe) = self.output {
             let emitted = dedupe.emit_diag(&diag)?;
             if level == "warning" {
@@ -116,7 +116,7 @@ impl<'a, 'gctx> JobState<'a, 'gctx> {
         } else {
             self.messages.push_bounded(Message::Diagnostic {
                 id: self.id,
-                level,
+                level: level.to_string(),
                 diag,
                 fixable,
             });
diff --git a/src/cargo/core/compiler/mod.rs b/src/cargo/core/compiler/mod.rs
index 4592fdfa3b4..45df3004589 100644
--- a/src/cargo/core/compiler/mod.rs
+++ b/src/cargo/core/compiler/mod.rs
@@ -54,6 +54,7 @@ mod unit;
 pub mod unit_dependencies;
 pub mod unit_graph;
 
+use std::borrow::Cow;
 use std::collections::{HashMap, HashSet};
 use std::env;
 use std::ffi::{OsStr, OsString};
@@ -1756,10 +1757,15 @@ fn on_stderr_line_inner(
             ..
         } => {
             #[derive(serde::Deserialize)]
-            struct CompilerMessage {
+            struct CompilerMessage<'a> {
+                // `rendered` contains escape sequences, which can't be
+                // zero-copy deserialized by serde_json.
+                // See https://github.com/serde-rs/json/issues/742
                 rendered: String,
-                message: String,
-                level: String,
+                #[serde(borrow)]
+                message: Cow<'a, str>,
+                #[serde(borrow)]
+                level: Cow<'a, str>,
                 children: Vec<PartialDiagnostic>,
             }
 
@@ -1782,7 +1788,8 @@ fn on_stderr_line_inner(
                 suggestion_applicability: Option<Applicability>,
             }
 
-            if let Ok(mut msg) = serde_json::from_str::<CompilerMessage>(compiler_message.get()) {
+            if let Ok(mut msg) = serde_json::from_str::<CompilerMessage<'_>>(compiler_message.get())
+            {
                 if msg.message.starts_with("aborting due to")
                     || msg.message.ends_with("warning emitted")
                     || msg.message.ends_with("warnings emitted")
@@ -1808,7 +1815,7 @@ fn on_stderr_line_inner(
                         })
                         .any(|b| b);
                     count_diagnostic(&msg.level, options);
-                    state.emit_diag(msg.level, rendered, machine_applicable)?;
+                    state.emit_diag(&msg.level, rendered, machine_applicable)?;
                 }
                 return Ok(true);
             }
@@ -1819,16 +1826,17 @@ fn on_stderr_line_inner(
         // cached replay to enable/disable colors without re-invoking rustc.
         MessageFormat::Json { ansi: false, .. } => {
             #[derive(serde::Deserialize, serde::Serialize)]
-            struct CompilerMessage {
+            struct CompilerMessage<'a> {
                 rendered: String,
-                #[serde(flatten)]
-                other: std::collections::BTreeMap<String, serde_json::Value>,
+                #[serde(flatten, borrow)]
+                other: std::collections::BTreeMap<Cow<'a, str>, serde_json::Value>,
             }
-            if let Ok(mut error) = serde_json::from_str::<CompilerMessage>(compiler_message.get()) {
+            if let Ok(mut error) =
+                serde_json::from_str::<CompilerMessage<'_>>(compiler_message.get())
+            {
                 error.rendered = anstream::adapter::strip_str(&error.rendered).to_string();
                 let new_line = serde_json::to_string(&error)?;
-                let new_msg: Box<serde_json::value::RawValue> = serde_json::from_str(&new_line)?;
-                compiler_message = new_msg;
+                compiler_message = serde_json::value::RawValue::from_string(new_line)?;
             }
         }
 
@@ -1844,11 +1852,12 @@ fn on_stderr_line_inner(
     // Look for a matching directive and inform Cargo internally that a
     // metadata file has been produced.
     #[derive(serde::Deserialize)]
-    struct ArtifactNotification {
-        artifact: String,
+    struct ArtifactNotification<'a> {
+        #[serde(borrow)]
+        artifact: Cow<'a, str>,
     }
 
-    if let Ok(artifact) = serde_json::from_str::<ArtifactNotification>(compiler_message.get()) {
+    if let Ok(artifact) = serde_json::from_str::<ArtifactNotification<'_>>(compiler_message.get()) {
         trace!("found directive from rustc: `{}`", artifact.artifact);
         if artifact.artifact.ends_with(".rmeta") {
             debug!("looks like metadata finished early!");
@@ -1866,12 +1875,14 @@ fn on_stderr_line_inner(
     }
 
     #[derive(serde::Deserialize)]
-    struct CompilerMessage {
-        message: String,
-        level: String,
+    struct CompilerMessage<'a> {
+        #[serde(borrow)]
+        message: Cow<'a, str>,
+        #[serde(borrow)]
+        level: Cow<'a, str>,
     }
 
-    if let Ok(msg) = serde_json::from_str::<CompilerMessage>(compiler_message.get()) {
+    if let Ok(msg) = serde_json::from_str::<CompilerMessage<'_>>(compiler_message.get()) {
         if msg.message.starts_with("aborting due to")
             || msg.message.ends_with("warning emitted")
             || msg.message.ends_with("warnings emitted")