In May, Microsoft laid off over 6,000 employees, about 3% of its workforce, marking its most significant job cuts since earlier layoffs in 2023. Following this, an additional 305 employees were laid off from the company's headquarters in Washington State. This trend reflects a broader pattern in Big Tech, where advancements in AI are leading to job losses, particularly for those with outdated skills. Experts predict significant unemployment increases as AI disrupts entry-level positions, with a report indicating a 25% decrease in hiring for recent graduates at major tech firms due to AI's impact.
In a statement to Bloomberg and CNBC, a Microsoft spokesperson said, 'We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.' This highlights corporate adaptability amidst evolving job markets.
Dario Amodei, CEO of Anthropic, predicted that in the next one to five years, AI could eliminate half of all entry-level white-collar jobs and increase unemployment rates significantly.
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