Artificial Intelligence Triggers Wave of Layoffs: 153,000 People Affected

AI and Layoffs in the US

According to data published by Challenger, Gray & Christmas Inc., US companies recorded the highest number of layoffs in the past twenty years in October 2023 due to the profound changes and cost-cutting efforts brought about by artificial intelligence in the industry.

Layoff Numbers Hit Record High

Last month, 153,074 individuals were laid off. This number exceeds nearly three times the figure from the same period last year, due to technological advancements and the impact of artificial intelligence. Additionally, it constitutes the highest level in the last 7 months.

Post-Covid Hires Declining

The company’s president responsible for revenues, Andy Challenger, noted that this situation is reminiscent of similar effects seen in 2003, which created a turning point in the labor market akin to that of mobile phones. Challenger emphasized that hiring demands have slowed down post-pandemic, with companies adopting 'belt-tightening' measures alongside increased use of artificial intelligence.

Finding New Jobs is Becoming Difficult

The report highlights that those laid off are struggling to quickly find new professional opportunities. This situation has the potential to create a wider loosening in the labor market. As of October, the total number of layoffs this year has surpassed 1 million, reaching the highest level since the pandemic.