2024 has only been underway for a little over 40 days, and the IT industry has already seen the layoff of almost 32,000 workers because of Artificial Intelligence
Many elements have made 2023 a challenging and unpredictable year for job security: poorly handled hiring procedures, difficulties generating advertising revenue, and a weakening economy driving businesses to reduce expenses, frequently by laying off employees.
Although the recession is often cited by businesses as the reason for slowing growth, artificial intelligence (AI) and machine learning (ML) models have also emerged as significant contributors. Aside from the economic downturn, the AI revolution was a major driver in last year's employment cutbacks and is still one this year.
Google made its layoff announcement, laying off hundreds of employees in several departments. The company is searching for ways to reduce costs and is shifting its focus to artificial intelligence (AI), which is also anticipated to replace humans in certain tasks. Among the key areas affected by these layoffs are the Augmented Reality (AR) team, Google Assistant, and the company's core engineering division.
Other tech businesses, including Google, are also reducing their workers. Additionally, Microsoft revealed a staff reduction by letting go of 1900 workers from its gaming division. Xerox just revealed that it is down 15%, with 23,000 workers. Similarly, Unity, a well-known developer of video game software, announced that it has eliminated 1800 jobs or 25% of its workforce. Hundreds of workers at Amazon MGM Studios and Prime Video have been eliminated. Twitch, the company's streaming business, also saw 500 employees let go recently. These layoffs haven't just affected big businesses; smaller firms have also been hit.
The fact that more businesses are choosing AI as a potential source of income underscores the trend in the sector as a whole toward greater automation. This change is causing a fundamental restructuring in which digital companies are reassessing the demand for labor, which will have a significant effect on the job market going forward.
A survey conducted by the American business Challenger Gray indicates that the rise of artificial intelligence is a serious threat to administrative positions. Workers in a variety of professions, such as programmers, managers of businesses, attorneys, accountants, specialists in finance and insurance, consultants, and others, may lose their jobs as a result of automation.
you can read more surveys from Challenger Gray here
According to the data, US corporations fired an incredible 82,307 employees in January, a whopping 136 percent increase from December. With 23,238 layoffs, the financial industry reported the most job losses in January. This is the biggest number since September 2018. The IT sector followed closely behind, announcing 15,806 layoffs, a notable increase from the month prior.
6,656 workers were laid off in the food processing industry as a result of growing costs and automation. In the media, merchants reported 5,364 job cutbacks, a notable increase over the previous month's total, even as the overall number of layoffs decreased. Workplace layoffs have increased in the media, with 528 layoffs in January being the largest number this year.
"Restructuring" was the primary cause of job losses in January, accounting for 28,329 layoffs. This was followed by 14,555 layoffs as a result of "closures" of factories, stores, and other units. However, 381 layoffs in January alone were attributed to AI.
Since May 2023, when Challenger started tracking this case, the company has reported that roughly 4,628 layoffs have been connected to AI. Companies have either turned to developing AI and recruited for associated roles or have replaced some functions and roles with AI.
According to Challenger, "the impact of the rapid adoption of AI is beginning to be seen from a jobs perspective, particularly in media and technology, but actually across sectors." "Yet many layoff decisions are not directly attributed to AI by companies."
It's interesting to note that, despite AI being held to blame for job losses, organizations are hiring more people in close disciplines as a result of the expanding AI and machine learning industries. A CompTIA report states that there is an increasing need for people with expertise in AI and machine learning. increase in businesses, and in the same industry, there were 33,727 job vacancies in January alone—the most monthly increase in a year.