US Companies Implement Layoffs Amid AI Investments and Economic Uncertainty
Despite a steady labor market, major U.S. companies are undergoing significant layoffs. Procter & Gamble, Microsoft, Citigroup, Walmart, Klarna, Disney, Paramount, and Warner Bros. Discovery are among the corporations affected, according to CNBC. The layoffs are attributed to pressure to reduce costs due to global uncertainty linked to tariffs imposed by President Donald Trump.
Artificial intelligence is increasingly playing a role in these job cuts. Klarna’s CEO revealed that the company has eliminated 40% of its workforce partly due to AI investments. Similarly, Google is offering voluntary buyouts to U.S. employees across various teams to free up cash for AI investments, planning to spend about $75 billion on capital expenses this year.
Industry leaders are warning of a potential ‘white-collar job apocalypse’ triggered by AI. The CEO of Anthropic told Axios that AI could eliminate half of all entry-level white-collar jobs within 1 to 5 years, potentially causing unemployment rates to spike to 10 or even 20 percent. He is advocating for more transparency from AI companies and urging the government to prepare for the potential impact.
The latest job report highlights a challenging landscape for new graduates, with March and April job gains revised down by a combined 95,000 jobs. As companies slow their hiring, current workers are opting to stay in their positions.
