In recent weeks, there's been a noticeable surge in layoff announcements from major companies across the United States. Thousands of employees from retail, technology, and pharmaceutical sectors have been shown the door. Experts suggest that this wave could escalate to a level serious enough to potentially plunge the country's economy into recession.
Let's delve into the details...
The most significant move of late has come from Amazon. The company announced that it would be laying off approximately 14,000 employees. In a note sent to its employees, Amazon's management stated that 'thanks to AI, companies can innovate more rapidly,' indicating that the organization would be streamlined.
Following Amazon, UPS confirmed that it has laid off 48,000 workers since the beginning of the year. American giant Target also made 1,000 of its employees redundant, while closing 800 open positions. Charter Communications, on the other hand, laid off around 1,200 people, including those at its headquarters.
The picture is similar on the technology front. Microsoft has made several rounds of mass layoffs this year. Novo Nordisk parted ways with 9,000 employees worldwide. After the merger of Paramount and Skydance, 1,000 people were let go. Giants like Intel (24,000), Nestle (16,000), Accenture (11,000), and Ford (11,000) also made it to this list.
MIT Professor Daron Acemoğlu, in his interview with Newsweek, indicated that companies have started to experiment with using artificial intelligence in 'white-collar positions'. Tech giants like Amazon are aiming to reduce costs by increasing automation, even in office tasks.
However, according to Acemoğlu, this doesn't necessarily mean mass unemployment in the short term. Nevertheless, the fact that thousands of people are laid off during companies' 'AI trials' raises serious questions about how employment will be shaped in the new era.
UPS: Employs 48,000 individuals
Amazon: Boasts a workforce of 30,000
Intel: Has 24,000 employees on its payroll
Nestle: Maintains a staff of 16,000
Accenture: Engages 11,000 workers
Ford: Operates with 11,000 employees
Novo Nordisk: Houses 9,000 staff members
Microsoft: Commands a team of 7,000
PwC: Enlists 5,600 professionals
Salesforce: Supports 4,000 workers
Paramount: Holds a crew of 2,000
Target: Sustains 1,800 employees
Applied Materials: Manages 1,444 staff
Kroger: Utilizes 1,000 workers