AI-related layoffs often hit entry-level roles, young workers

"Mass layoffs at top tech firms and grim jobs reports in October appear to confirm that AI is taking away jobs - a trend likely to continue, experts said. At the same time, AI-assisted human roles will grow, perhaps partially offsetting workforce cuts. For now, AI is apparently being used to reduce corporate bloat, replace entry-level jobs and slow the hiring of young workers across sectors where AI agents can be deployed."

"In a survey released last week, McKinsey said more organizations will use AI tools to reduce headcounts than grow it. A third of respondents said their organization's workforce will decline as a result of AI; only "a small percentage of respondents say they expect their organization's head count to increase," McKinsey said in its State of AI in 2025 report."

"But the short-term impact of AI is being felt now. Job cuts in October totaled 153,074, according to a report released last week by job placement firm Challenger, Gray & Christmas. That's up 175% compared to the same month in 2024. The higher pace of cuts is due to several reasons, including ongoing AI adoption, rising costs, lower corporate spending, and hiring freezes, said Andy Challenger, chief revenue officer for Challenger, Gray & Christmas."

Mass layoffs at major tech companies and rising October job cuts reflect AI-driven shifts in employment and hiring patterns. Surveys show more organizations plan to use AI to reduce headcounts than to grow them, with about a third expecting workforce declines. Short-term job cuts surged in October, influenced by AI adoption, rising costs, lower corporate spending, and hiring freezes. At the same time, demand is growing for AI-related skills in roles such as claims adjusters, digital marketers, and wealth managers where AI integrates into existing workflows.

Read at Computerworld