Inevitable Effects of AI on the Job Market, According to Workforce Expert

Inevitable Effects of AI on the Job Market, According to Workforce Expert Inevitable Effects of AI on the Job Market, According to Workforce Expert

Amazon is cutting corporate jobs thanks to AI-driven efficiencies.

CEO Andy Jassy sent a memo on June 17 saying AI and generative agents will reshape work at Amazon. This means fewer people are needed for some tasks and more for others.

Jassy wrote:

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"As we roll out more Generative AI and agents, it should change the way our work is done,"
"We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs."

This follows a trend. Microsoft plans to cut 3% of its workforce. Google is pushing buyout offers across teams. Klarna slashed 40% of staff citing AI. Shopify banned new hires unless AI can’t do the job.

Experts warn AI layoffs will hit white-collar workers hardest.

Kate Lister, president of Global Workplace Analytics, told CNBC:

"It’s going to hurt for certain parts of the population."

Lister sees admin and customer service jobs as most vulnerable to AI cuts. Blue-collar roles appear safer for now.

She added:

"We’ve known this is coming for a very long time — not even specific to AI, but for the last 10 years we’ve been saying that we need a skills upgrade."

Lister also struck a cautionary note about the future:

"I think it will make us a whole lot more intelligent, a whole lot more efficient, and allow us to do the jobs that we as humans are good at,"
"But the fact is, it’s going to hurt for certain parts of the population."

Amazon’s roadmap for AI-driven layoffs signals more tech firms will follow. The job market is bracing.

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