Major Companies Slash Thousands of Jobs as AI Technology Takes Over

Goldman Sachs warns that artificial intelligence adoption could drive up U.S. unemployment this year, as major corporations eliminate thousands of positions. The investment firm estimates AI was behind 5,000 to 10,000 monthly job losses in the most vulnerable industries last year.

A new warning from Goldman Sachs reveals that artificial intelligence technology could significantly increase unemployment across the United States this year, as major corporations continue eliminating positions in favor of automated systems.

According to Goldman Sachs economists, AI technology was responsible for between 5,000 and 10,000 monthly job eliminations in the most vulnerable U.S. industries during the previous year. The technology also contributed to 7 percent of all planned workforce reductions announced in January.

The following companies have announced significant layoffs connected to AI implementation since October:

Polish media company Agora announced plans in December to eliminate up to 166 positions, representing 6.56 percent of its staff, as part of digital business improvements.

German insurance giant Allianz intends to eliminate up to 1,800 positions in its travel insurance operations as artificial intelligence replaces human-performed tasks, according to a source familiar with the strategy who spoke to Reuters in November.

Technology leader Amazon confirmed 16,000 corporate position eliminations on January 28, while indicating additional cuts remain possible as the company pursues efficiency improvements through AI integration.

Design software company Autodesk announced on January 22 it would eliminate approximately 7 percent of its global staff, roughly 1,000 positions, while redirecting resources toward cloud platform development and AI programs.

British American Tobacco revealed on February 12 a new productivity initiative driven by AI technology that will result in workforce reductions, though the company did not specify how many employees would be affected.

Chemical manufacturer Dow announced on January 29 it will eliminate approximately 4,500 positions, representing 13 percent of its total workforce, as the company implements automation and AI across all operational processes.

Computer and printer manufacturer HP Inc stated in November it anticipates cutting between 4,000 and 6,000 positions globally by fiscal year 2028 as operations become more streamlined through AI adoption.

Brazilian e-commerce platform MercadoLibre eliminated 119 positions as part of AI expansion efforts, according to a January 12 report from Folha de S. Paulo.

Meta, which operates Facebook and Instagram, is eliminating more than 1,000 positions at its Reality Labs division as the company shifts focus from Metaverse technology to AI devices, Bloomberg reported on January 13. The social media company also cut approximately 600 positions from its Superintelligence Labs division in October.

Sportswear manufacturer Nike is eliminating 775 employee positions, a source told Reuters in January, as the company seeks to increase profits while accelerating automation implementation.

Social media platform Pinterest announced in January it will reduce its workforce by up to 15 percent to reallocate resources toward AI-focused positions and strategic initiatives.

French appliance manufacturer SEB announced on February 25 a restructuring initiative that will leverage AI capabilities and potentially impact up to 2,100 positions worldwide by 2027.

Australia’s largest telecommunications company Telstra plans to eliminate 650 positions through an AI-focused restructuring partnership with India’s Infosys, The Australian reported on February 11.

Australian software company WiseTech announced on February 25 it will eliminate approximately 2,000 positions, nearly one-third of its global workforce, as AI technology becomes integrated into customer software and internal operations.