Despite profits, tech companies are laying off employees on a large scale. Artificial Intelligence (AI) is believed to be the main reason for this change. Companies say that now there are many tasks that are being completed with more speed and accuracy by machines and AI instead of humans. Due to this, the need for employees is decreasing.
Experts have warned the white collar jobs are in danger. Assording to Anthropic CEO Dario Amodei, "AI can reduce white collar jobs by half and unemployment can increase by 20% in five years."
Geoffrey Hinton has also expressed the possibility of a large number of jobs being lost due to AI.
According to Microsoft CEO Satya Nadella, "Layoffs are happening due to focus on AI."
Sundar Pichai believes, "Layoffs have improved work."
InMobi CEO Naveen Tewari said, "Machines will do 80% of coding work by 2025."
Nvidia CEO said, "The way of working is going to change."
Big companies are also laying off
Big tech companies like Google, Microsoft, Amazon, Meta and Duolingo are drastically reducing their workforce due to AI.
Google has laid off more than 12,000 employees since 2023.
Meta laid off 5% of its staff in February 2024.
Microsoft, Amazon and Duolingo have also reduced their staff.
Every fourth job affected by AI
According to a study by the International Labor Organization and the National Research Institute of Poland, one in every four jobs in the world is being affected by generative AI. At the same time, the World Economic Forum report says that while 17 crore new jobs will be created in this decade, 9.2 crore jobs will be lost.
About 2.63 lakh jobs were lost in 2022. 1.67 lakh employees were fired in the first quarter of 2023.