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Artificial Intelligence is a major factor behind recent tech layoffs at companies like Microsoft and Amazon.
AI is replacing routine tasks, putting entry-level and support roles at the highest risk.
While AI eliminates some jobs, it also creates new roles requiring advanced digital and human skills.
Artificial intelligence (AI) has become more powerful and more widely used across industries. As a result, many companies are changing how they operate, and in some cases, reducing the number of employees they need. Although some of these job cuts are blamed on the economy or company restructuring, a growing number of experts believe that AI is a silent but major force behind these tech layoffs.
This article takes a close look at how AI is affecting jobs in the tech industry and what it could mean for the future of work.
More than 61,000 jobs have already been cut from the tech industry this year. Companies like Microsoft, Amazon, and Google have all laid off large numbers of employees. Microsoft alone has let go of over 6,000 workers in May, followed by more in June. These layoffs are happening even as these companies continue to grow and make profits.
One of the reasons behind these job cuts is the rising use of AI tools. Companies are finding that certain tasks, especially those that are repetitive or routine, can now be done more efficiently using AI. As a result, some roles are no longer needed.
In places like Australia and other developed countries, AI is already replacing tasks such as data entry, customer service, and simple office work. This trend is expected to spread to more regions and industries.
The jobs most affected by AI are usually those that require basic skills and involve repeating the same tasks daily. For example, junior programmers, administrative assistants, and call center agents are seeing their roles shrink or disappear.
Experts have warned that up to 50% of entry-level white-collar jobs could vanish within the next five years due to AI automation. Job postings for programmers and IT support roles have dropped significantly since AI tools like ChatGPT became widely used.
Interestingly, research shows that higher-paying jobs that involve routine tasks are also more at risk than some lower-paying, hands-on jobs. This means that it's not just blue-collar jobs that are affected—AI is also making an impact on traditional office roles.
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Unlike traditional job cuts that come with big announcements, many AI-driven layoffs are happening quietly. Some companies don’t clearly say that AI is the reason for the cuts. Instead, they talk about “restructuring,” “efficiency,” or “strategic changes.”
Workers often realize only later that their jobs were replaced by AI tools or automated systems. This kind of subtle shift is sometimes called “AI outsourcing,” where work isn’t sent to another country but is handed over to machines.
This trend is causing stress and uncertainty in the workplace. Many workers feel anxious, especially when their roles involve tasks that could be easily handled by AI shortly.
While AI is removing some jobs, it’s also transforming many existing roles. Instead of replacing workers entirely, AI is often used to support them or make their work more efficient.
For example, in marketing, AI can help analyze customer data, but a human is still needed to make final decisions or create creative campaigns. In healthcare, AI tools can help doctors read scans faster, but they don’t replace the need for a trained professional.
Experts believe that AI’s role in helping people do their jobs better is stronger than its ability to fully replace them. AI can take over the boring or repetitive parts of a job, leaving people free to focus on tasks that require creativity, judgment, and emotional intelligence.
As AI tools become more common, new kinds of jobs are being created. These include roles like:
AI ethics advisors
AI product managers
Data labeling specialists
Human-AI interaction designers
Prompt engineers
These jobs require a mix of technical knowledge and human skills, such as critical thinking, teamwork, and decision-making.
However, many workers aren’t yet prepared for this shift. Around two-thirds of companies now say they look for AI skills when hiring, but only one-quarter offer training to help employees gain these skills.
The effect of AI on the job market is complex. On one hand, thousands of workers in programming, customer service, and support roles are losing their jobs. On the other hand, new roles focused on AI development, security, and human oversight are opening up.
Rather than eliminating work, AI is changing the way work is done. Some jobs may shrink or disappear, but others will grow in importance. For those who can adapt and learn new skills, AI may offer new career opportunities.
Still, this change won’t be easy for everyone. People in entry-level roles or without technical skills may find it harder to shift into new positions. That’s why retraining programs and education are becoming more important than ever.
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The economic effects of AI are already visible. In the United States alone, over 275,000 government positions have been reduced. In the tech sector, more than 77,000 jobs have been cut across 300 companies in recent years.
This wave of layoffs is leading to more social and emotional stress, especially among younger workers. Many are worried about job security and long-term career prospects. The fear of being replaced by a machine is now real for millions of employees.
These concerns are also leading to new discussions about regulations. Governments and companies are starting to talk more seriously about creating rules for AI, especially to make sure it’s used fairly and doesn’t harm workers unnecessarily.
To stay relevant in the job market, workers and companies alike need to change how they think about work. Some helpful strategies include:
Learning new skills, especially those related to AI, data, and digital tools
Improving soft skills, such as communication, leadership, and creative thinking
Adapting to change, being open to new roles or industries
Understanding AI ethics, privacy, and responsible use of technology
Supporting employee training programs that focus on future job needs
Companies must also take responsibility by helping workers transition through training and support. A balanced approach—where humans and AI work together—can lead to a stronger, more efficient workforce.
AI is changing the job landscape in a big way. While it's not replacing everyone, it is replacing certain tasks and roles, especially those that are simple or repetitive. This change is happening quietly, without always being directly acknowledged by companies.
But it’s not all bad news. AI is also creating new jobs and career paths, especially for those willing to learn and adapt. The future will belong to those who can use both technology and human skills to succeed in a changing world.
Preparing for this shift is key through education, smart policies, and a willingness to embrace change. The goal is not to stop AI, but to make sure it helps people, rather than replacing them without support.
