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AI Sparks Job Losses: 10,000+ Cuts Monthly
25 Feb
Summary
- AI adoption may increase US unemployment, with job losses already emerging.
- Goldman Sachs estimates 5,000 to 10,000 monthly job losses due to AI.
- Numerous global companies are announcing layoffs linked to AI initiatives.
Growing unease surrounds artificial intelligence's impact on established industries, with Goldman Sachs forecasting increased U.S. unemployment this year. The financial institution's economists estimate that AI contributed to 5,000 to 10,000 net job losses monthly in the most affected U.S. sectors throughout last year.
This trend is reflected globally, as numerous companies have announced job cuts tied to AI integration. These include major corporations like Amazon, Dow, and Meta, which have collectively reduced thousands of jobs. Other firms, such as Allianz, HP Inc., and Nike, are also implementing AI-driven programs that are expected to lead to further reductions in their workforces by 2027 or 2028. The proactive restructuring by these companies highlights a significant shift towards automation and AI-focused strategies.
Companies across diverse sectors, from media and insurance to technology and manufacturing, are actively streamlining operations and redirecting resources. For example, Agora, British American Tobacco, and SEB are among those initiating AI-driven productivity programs or restructuring plans. These moves underscore a widespread industry pivot, aimed at enhancing efficiency and adapting to the evolving technological landscape, even as job displacement becomes a growing concern.
