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The Great AI Layoffs Are Upon Us
Bye, jobs. // Illustration by Kate Walker
There’s a lot of bloodletting in corporate America this week, with seemingly every major company slashing its workforce. But it’s not because their financials are bad… it’s because AI has allegedly gotten that good.
Why It Hurts: We’re only three years into the AI era (ChatGPT launched in November 2022), but the tech has already advanced enough to disrupt human jobs at scale. The American labor market is still contending with two million people who’ve been unemployed for over 27 weeks, a lingering effect of last year’s recession-fear layoffs… so adding another 100,000+ job seekers will only make matters worse.
Behind The Pink Slips: CEOs are saying the quiet part out loud — AI is replacing you.
It’s hard to keep track of how many people are losing their jobs this week — Amazon, UPS, Target, Rivian, GM, Molson Coors, Paramount, Booz Allen Hamilton, Chegg, and more are all laying off thousands, even tens of thousands, of employees.
The vast majority of pink-slipped employees are college-educated, white-collar workers in middle management, sales, and software engineering — roles that were among the most stable and well-paying just a decade ago.
And the reason for the cuts is the same across the board: AI has automated these jobs, one person can now manage multiple AI agents across tasks, and companies need to lower headcount to free up capital for more AI-driven projects.
Final Review: The fallout from these layoffs will be far-reaching. As experienced workers jockey for fewer, more competitive positions, entry-level applicants will find it even harder to get a foot on the career ladder. Already, the graduating class of 2025 has submitted more job apps than the previous class… and received fewer offers, per the National Association of Colleges and Employers. It’s no wonder that Americans’ confidence in getting a job is at its lowest point in years.
And for those who still have jobs, they’ll likely take on additional responsibilities — more work they’ll be expected to do faster with AI… and maybe still have to spend extra time fixing the AI’s mistakes.
Projection: For the first time in decades, today’s high schoolers may be encouraged to seriously consider blue-collar, frontline, or other specialized positions that are intrinsically AI-proof.
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Today’s email was written by David Vendrell.
Edited, Polled, and Copy-edited by Kait Cunniff.
Published by Darline Salazar.