Artificial intelligence is now emerging as a leading driver of layoffs across the US workforce, according to Challenger, Gray & Christmas.
New data from the outplacement services firm shows employers announced 60,620 job cuts in March, a 25% increase from February.
According to Challenger, AI accounted for the largest share of those reductions. Companies cited artificial intelligence as the reason behind 15,341 layoffs, representing 25% of all announced cuts during the month, ahead of closures, restructuring and broader economic conditions.
The firm also notes that the trend is particularly visible in the technology sector, where companies announced 18,720 job cuts in March, bringing the year-to-date total to 52,050, up 40% from the same period last year.
Challenger says some of the largest reductions are tied to companies reallocating resources toward AI.
Layoffs at Dell Technologies contributed significantly to the monthly total, while Oracle Corporation and Meta Platforms have also initiated cuts as they shift investment toward artificial intelligence.
James E. Challenger says AI is directly replacing certain roles while reshaping others, highlighting the need for employees to acquire and develop AI-related skills.
“Companies are shifting budgets toward AI investments at the expense of jobs. The actual replacing of roles can be seen in Technology companies, where AI can replace coding functions. Other industries are testing the limits of this new technology, and while it can’t replace jobs completely, it is costing jobs.
One thing that is clear is that AI is changing work and the workforce. Workers will need to be more strategic as they lead AI-powered agents that handle increasingly complex tasks. Human workers will need strong decision making and judgment skills in the age of AI.”
Disclaimer: Opinions expressed at CapitalAI Daily are not investment advice. Investors should do their own due diligence before making any decisions involving securities, cryptocurrencies, or digital assets. Your transfers and trades are at your own risk, and any losses you may incur are your responsibility. CapitalAI Daily does not recommend the buying or selling of any assets, nor is CapitalAI Daily an investment advisor. See our Editorial Standards and Terms of Use.