Quick Read
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Microsoft’s 60,000 buyouts, Oracle’s 21,000 cuts, and Amazon’s plan to skip 600,000 future hires signal AI is already gutting tech employment.
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Elon Musk warns that 200 neocloud companies face collapse, a situation that could push sector-wide layoffs up by an additional 300,000 to 400,000 positions.
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Goldman Sachs projects AI will displace roughly 9% of all American workers, with low-level coders facing the steepest losses.
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Anthropic’s S-1 mentions AI could affect jobs in the technology, finance, law, and consulting sectors. Last year, CEO Dario Amodei said unemployment in the US could be affected enough that the national jobless rate might reach 20%
In the software sector, the early wave of that is already underway.
The early total is this: largely driven by advances in AI, Microsoft (NASDAQ: MSFT) offered buyouts to 60,000 people. Much smaller, Oracle (NASDAQ: ORCL) cut 21,000 outright. And neither may be done as AI takes on more and more tasks performed at tech-driven US companies.
Amazon (NASDAQ: AMZN) has 1.6 million workers. The New York Times reported that the e-commerce and cloud company indicated it might not hire 600,000 workers it would have needed in the past by 2033. It has already cut 16,000 current workers. The headline read, “Amazon Plans to Replace More Than Half a Million Jobs With Robots.”
Mark Zuckerberg considered a cut of 60% of all Meta (NASDAQ: META) workers in August. He pulled back, and the cuts were smaller. If he goes ahead later, the cuts would hit 45,000.
Below the megatechs, Block cut 4,000 people. Intel’s cuts are nearly 14,000. IBM laid off people but didn’t release how many.
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Just yesterday, Elon Musk said that 200 neocloud companies face guppy-level death. “As of the past few weeks, debt markets have almost entirely shut off access to money for any company that doesn’t have substantial revenue independent of AI data centers,” Musk posted on X. A review of companies like CoreWeave (NASDAQ: CRWV) and Revelio Labs shows they have about 2,500 each. So, a consolidation could push layoffs in this tier of companies to 300,000 to 400,000 jobs.