"How many times have we heard executives tout AI as a thought partner, a collaborator, a productivity accelerator? Or as a catalyst for upskilling and repurposing people? And yet, we're already seeing evidence of this trend. In 2025 alone, UPS cut 48,000, Amazon eliminated 14,000 jobs, and Verizon announced plans to lay off 15,000 employees. The reason for all these cuts? While restructuring, the need for different skills, and business optimization are all frequently cited, increasingly AI is as well."
"Since early 2022, just before widespread AI-hype, U.S. job-openings as measured by the Bureau of Labor Statistics have fallen from roughly 12.1 million to about 7.7 million, a decline of approximately 36%. Over the same period, the S&P 500's total return (price plus dividends) is roughly 48%, reflecting strong equity markets. Conventional wisdom would tell you a booming stock market should create more jobs, not fewer."
Since early 2022, U.S. job openings have fallen from about 12.1 million to 7.7 million, a drop of roughly 36%. Over the same period, the S&P 500 total return rose about 48%, reflecting strong equity markets. Large companies are shifting AI from a productivity tool to a strategic lever for workforce restructuring, with i4cp projecting this change by 2026. Major 2025 layoffs at UPS (48,000), Amazon (14,000), and Verizon (15,000 planned) increasingly cite AI as a reason. A World Economic Forum survey found 41% of companies expect workforce reductions for AI over the next five years.
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