Companies cutting jobs as investments shift toward AI
An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song
(Corrects attribution of survey in paragraph 3 in story that ran on February 25 to Challenger, Gray & Christmas not Goldman Sachs)
Feb 25 : Investors' and economists' concerns that artificial intelligence will upend established industries are deepening, as Goldman Sachs warned in February that accelerating AI adoption could push U.S. unemployment higher this year, with job losses already emerging in sectors most exposed to automation.
Goldman economists estimated in February that the technology was responsible for 5,000 to 10,000 monthly net job losses last year in the most exposed U.S. industries.
A survey by global outplacement firm Challenger, Gray & Christmas linked AI to 7 per cent of total U.S. planned layoffs announced in January.
Here is a list in alphabetical order of announced global layoffs linked to AI from last October going on:
AGORA
Polish media group in December said it planned to lay off up to 166 employees, or 6.56 per cent of its workforce, as part of a restructuring to improve its digital business.
ALLIANZThe German insurance group plans to cut up to 1,800 jobs in its travel insurance division as AI increasingly replaces manual processes, a source familiar with the plans told Reuters last November.
AMAZONThe tech giant confirmed 16,000 corporate job cuts on Jan. 28, leaving open the possibility of further reductions as it pursues an AI‑ and efficiency‑driven overhaul.
AUTODESKThe U.S. design‑software maker said on Jan. 22 it would shed about 7 per cent of its global workforce, or roughly 1,000 jobs, as it redirects spending to its cloud platform and AI initiatives.
BRITISH AMERICAN TOBACCOThe cigarettes, tobacco and nicotine products seller announced on February 12 a new AI-driven productivity programme expected to lead to job cuts, without specifying how much of the workforce would be affected.
DOWThe U.S. chemical producer said on January 29 it will slash about 4,500 jobs, 13 per cent of its total workforce, as it streamlines all its end-to-end work processes by using automation and AI.
HP INCThe U.S. computer and printer manufacturer said last November it expects to cut 4,000 to 6,000 jobs globally by fiscal 2028 as it streamlines operations and adopts AI.
MERCADOLIBREThe Brazilian e‑commerce company laid off 119 people in an AI‑expansion move, Folha de S. Paulo reported on Jan. 12.
METAThe owner of Facebook and Instagram is cutting over 1,000 jobs at its Reality Labs unit in a pivot from the Metaverse to AI devices, Bloomberg reported on Jan. 13.
Meta is also cutting around 600 positions out of the several thousand roles in its Superintelligence Labs, the social media platforms owner said in October.
NIKE
The sportswear giant is laying off 775 employees, a source familiar with the matter told Reuters in January, as the firm looks to boost profits and accelerate its use of automation.
PINTERESTThe social‑media platform said in January it will cut up to 15 per cent of its workforce to redirect resources toward AI‑focused roles and strategy.
SEBThe French small appliance and cookware maker said on February 25 it would launch a restructuring plan that also takes "full advantage" of the possibilities offered by AI that may impact up to 2,100 jobs worldwide by 2027.
TELSTRAAustralia’s biggest telecoms firm plans to cut 650 jobs in an AI‑driven restructure with India’s Infosys, The Australian reported on Feb. 11.
WISETECHThe Australian software company said on Feb. 25 it will axe about 2,000 jobs, nearly one‑third of its global workforce, as it integrates AI into customer software and internal operations.
