"The AI Effect on Job Losses Lee pointed out that many companies are no longer hiding the reason for their cuts. Tech firms, law firms, consulting groups and financial institutions have all attributed layoffs directly to AI. My view is that the dynamic scales quickly. If AI lets a company cut five percent of its workforce today, it allows them to cut ten percent once the tools improve. Firms like IBM already talk openly about replacing roles, not augmenting them."
"Who Faces the Most Risk We talked about how the earliest effects are showing up in fields where young workers usually get their start. Research assistants, junior analysts, contract coders, discovery stage legal roles and entry level consulting positions are already shrinking. Even strong academic credentials are no guarantee. I argued that someone graduating from a top school today may still struggle to land an analyst position at a major bank or consulting firm that now operates with smaller classes."
More than 150,000 announced layoffs occurred in October, the highest October reading in two decades. Announced layoffs are a directional indicator distinct from total separations in government data. Collapsing consumer confidence combined with rising announced layoffs increases the likelihood of subsequent job losses. Automation and AI are actively accelerating job reductions, with companies increasingly citing AI as the reason for cuts. AI enables deeper workforce reductions as tools improve, and replaced functions often do not return, making the disruption structural rather than cyclical. Early effects appear most pronounced in entry-level roles such as research assistants, junior analysts, contract coders, and early-stage legal and consulting positions.
Read at 24/7 Wall St.
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