Global Firms Cut Thousands of Jobs to Fund AI Expansion
Goldman Sachs warns that AI adoption is driving job losses as firms restructure. Major companies are cutting roles to prioritize automation and digital efficiency.
Concerns regarding the impact of artificial intelligence on the global labor market are intensifying as major financial institutions warn of potential disruptions. Analysts at The Goldman Sachs Group, Inc. recently noted that the rapid adoption of AI technology could lead to a rise in unemployment across the United States this year. According to their estimates, automation was responsible for between 5,000 and 10,000 monthly net job losses in the most exposed industries during the past year, accounting for approximately 7% of all planned layoffs in January.
Major corporations have already begun restructuring their workforces to prioritize AI integration and operational efficiency. Amazon.com, Inc. led recent announcements with 16,000 corporate job cuts as part of an efficiency-driven overhaul. Similarly, HP Inc. plans to reduce its global headcount by 4,000 to 6,000 positions by the end of 2028 to streamline operations through new technologies. In the financial and industrial sectors, Mizuho Financial Group, Inc. is implementing a long-term plan to cut up to 5,000 roles over the next decade. Dow Inc. announced it would reduce its workforce by 4,500 positions, or approximately 13%, citing automation as a primary driver. Meanwhile, Block, Inc. is cutting more than 4,000 jobs—nearly half of its staff—as it pivots toward an AI-focused structure.
The shift toward automation is being felt across diverse sectors globally as companies reallocate resources toward emerging technologies:
- WISETECH GLOBAL LTD is reducing its global workforce by one-third, affecting 2,000 employees.
- Allianz SE is cutting up to 1,800 roles in its travel insurance division where manual tasks are being replaced by AI.
- Meta Platforms, Inc. has announced significant changes, including over 1,000 cuts in its Reality Labs division to focus on AI devices and approximately 600 cuts in its AI Superintelligence Labs.
- Autodesk, Inc. is cutting around 1,000 positions, or 7% of its staff, to facilitate a shift toward cloud and AI services.
- NIKE, Inc. is cutting 775 jobs as part of a push for automation and profit growth.
- TELSTRA GROUP LTD, in collaboration with Infosys Limited, is cutting 650 roles as part of an AI-driven restructuring.
- Pinterest, Inc. is reducing its workforce by up to 15% to redirect resources toward its AI strategy.
- Agora, Inc. and MercadoLibre, Inc. have announced smaller reductions of 166 and 119 jobs, respectively, to support digital restructuring and AI expansion.
- British American Tobacco p.l.c. has also launched a productivity program involving job cuts, though specific numbers were not disclosed.
Other companies, such as SEB, are also planning significant reductions, with up to 2,100 cuts by the end of 2027 to leverage AI capabilities and enhance operational performance.
