Diving brief:
- Until now, more than 17,000 jobs have been directly awarded to artificial intelligence this year, the technological industry opening the way, The Challenger Open Society, Gray & Christmas, said in a recent report.
- Most of the cuts were announced in the second half. In September only, Challenger Monitoring 7,000 job cuts due specifically to AI, according to research.
- “Technological companies undergo incredible disruption with AI which does not only cost jobs, but also making landing positions difficult, especially for entry -level engineers”, ” Andy Challenger, Senior Vice-President of the Overseas Company based in Chicago, Illinois, in the report. “”Technology The leaders have stressed that AI modifies the nature of the work, and more and more companies require that their teams be trained on it. »»
Diving insight:
Salesforce is one of the companies that have directly allocated massive job cuts to AI initiatives in recent months.
In an interview with the August podcast, the CEO of Salesforce, Marc Benioff, said that the company had reduced its customer service to 9,000 to around 5,000 after AI agents began to manage conversations with customers.
Overall, companies have announced 946,426 job cuts so far this year, the highest level of year since 2020, when 2.1 million have been announced, according to the Challenger report.
The government’s ministry of efficiency was the main engine, quoted in 293,753 layoffs planned so far this year, Challenger said. This includes direct reductions in federal workforce and its entrepreneurs.
The market and economic conditions are the second most cited reason for the workforce of the workforce, responsible for 208,227 discounts of year to date. “This reflects the continuous response of employers to economic uncertainty, inflation, prices and exchange demands between the sectors,” said the report.
The closings of stores, units or plants have led to 144,652 dismissals so far this year, against 97,590 during the same period last year. Restructuring efforts led to 100,450 job cuts, while bankruptcies represented 37,590 layoffs from 10,700 to September 2024.
Technological updates, including automation and “possibly” implementation of AI, led to 20,219 job cuts in 2025, said Challenger. 17,375 others were explicitly allocated to the AI, including 7,000 announced in September.
The number of layoffs directly awarded to the AI has become soaked since a report published by Challenger in early July.
“We have seen a peak in companies, mainly in technology, to announce job cuts due to AI,” has a Challenge said the spokesperson.
