AI-Driven Layoffs

Major employers announced tens of thousands of job cuts this week, with companies citing artificial intelligence (AI) as a key factor enabling them to operate with fewer employees.

Context

For years, discussions about AI replacing jobs focused on the future, but recent layoffs suggested the technology was already eliminating white-collar positions. Jobs requiring bachelor's degrees and higher pay were particularly vulnerable to AI, according to economists at the Federal Reserve Bank of Philadelphia. A study from career site Indeed found that roughly one-quarter of technology industry workers said they had experienced layoffs or role eliminations due to AI adoption during the past two years.

Amazon Cuts

On Tuesday, Amazon announced it would eliminate approximately 14,000 corporate roles, with plans to eventually cut up to 10% of its white-collar workforce.