Major tech companies are still laying off large numbers of employees, causing concerns about the impact of artificial intelligence (AI) on the workforce.
Companies like Microsoft, Amazon, Google, and Dell have announced plans to let go of over 57,000 employees in 2024, with more layoffs expected in the near future. This is a significant increase from the 263,180 layoffs by nearly 1,200 tech companies in 2023. The reasons cited include adjusting to the post-COVID-19 hiring boom, facing stiff competition in the digital market, and reorganizing to focus more on AI.
Despite the layoffs, companies still require skilled professionals to train and implement their AI systems.
Building Strong AI Teams
Some attribute the job cuts to the adoption of AI, as businesses are turning to new technologies to streamline operations and cut costs. A McKinsey survey found that 25% of professionals anticipate job losses due to increased AI integration.
However, it could be argued that companies are aiming to assemble specialized teams capable of effectively utilizing AI.
Recent research from Advania, a Microsoft partner, highlights that the complexity of IT systems is hindering progress in leveraging new technologies. The study reveals that 81% of organizations struggle with scaling, updating, and future-proofing their tech infrastructure.
