Wed, 29 Oct 2025

Wed, 29 Oct 2025 The AI job cuts are here - or are they?

Amazon's latest cuts fed into anxiety about AI replacing workers. But some are sceptical that recent layoffs are a telling sign of how AI is affecting employment.

* However, experts question whether AI is fully to blame and suggest that company-specific dynamics may be at play.
* A study by the Federal Reserve Bank of St Louis found a correlation between occupations with high AI prevalence and increased unemployment since 2022.
* Research by Morgan Frank at the University of Pittsburgh found that workers in office and administrative support sectors were disproportionately affected by the launch of ChatGPT, but computer and math occupations showed no change.
* Experts say that the conversation about AI's impact on employment is often driven by the phrase "AI" itself, rather than actual evidence.
* A big question is what hiring patterns will look like when the economy returns to a period of solid growth.
* Amazon has stated that it needs to be more lean in order to take advantage of AI opportunities, despite reporting strong quarterly results.
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