"One of the world's top artificial intelligence firms has just had one of the world's largest AI-related layoffs. Amazon will cut 30,000 white-collar workers. Oracle, Dropbox, and Block have announced layoffs because of the use of AI. Walmart and Goldman Sachs both have added large numbers of employees in the past five years. Yet, they plan to keep worker counts flat largely because of AI applications."
"Recently released Goldman Sachs research paper "How Will AI Affect the Global Workforce?" claims 6% to 7% of American workers will be "displaced." This is based on the theory that while some jobs will disappear, new jobs will also arise. However, the research does not show how or why this will work. During the process of job transformation, the author wrote, "there could also be a period of higher unemployment while AI-displaced workers are looking for new jobs.""
"On the high-end advisory side, McKinsey has cut 5,000 people because of "AI efficiencies." OpenAI's Sam Altman says he has started the process of programming AI to replace entry-level bankers. In each case, these people have compensation at six-figure levels. One key takeaway from these layoffs is that they span a wide range of sectors, from Walmart to McKinsey. The profiles of these employers could not be more different."
Large corporations across diverse sectors are cutting or freezing white-collar headcount due to AI-driven automation and efficiencies. Amazon will cut 30,000 white-collar workers and projects automation could replace 500,000 roles across its operations. McKinsey cut 5,000 employees citing "AI efficiencies," and OpenAI's Sam Altman has begun programming AI to replace entry-level bankers. Oracle, Dropbox, and Block have announced layoffs tied to AI, while Walmart and Goldman Sachs, despite recent hiring, plan to keep worker counts flat because of AI. Goldman Sachs projects 6–7% of American workers could be displaced, roughly 10 million jobs, risking economic downturn during workforce transitions.
Read at 24/7 Wall St.
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