AI Responsible for Layoffs? About 4,000 Employees in US Lost Their Jobs in May 2023 Due to Artificial Intelligence, Says Report
It was not only Artificial Intelligence (AI) that led to the layoffs. The report stated that business closure was one of the most common reasons for the mass layoffs in May which resulted in 19,600 people losing their jobs. Market and economic conditions are said to be the reason for 14,600 people losing their jobs while "no reason provided" for 12,900.
Mumbai, June 5: Artificial intelligence has not only allowed humans to think and work beyond their capacity but has now also reportedly been the cause of them losing their jobs. According to a monthly report from Challenger, Gray & Christmas, around 4,000 people who were laid off last month in May 2023 reportedly lost their jobs due to Artificial Intelligence (AI). Yes, you read that correctly!
If the report is to be believed then AI is responsible for the massive layoffs which took place last month in the United States. "The Challenger Report 2023" which was released on Thursday revealed that there were about 4,17,500 jobs lost between January to May 2023. This is said to be the worst five-month start to a year since 2020 when COVID-19 led to over 1.4 million layoffs globally. ZoomInfo Layoffs: US-Based Marketing Tech Firm To Lay Off 3% of Its Workforce Globally.
What Did the 'The Challenger Report 2023' Reveal?
As per the report, the start of the year 2023 is said to have produced the worst layoff numbers ever for the second time since the 8,20,000 layoffs which took place in 2009. Speaking about the mass layoffs in the US, Andrew Challenger, labour expert and Senior Vice President of Challenger, Gray & Christmas said, "Consumer confidence is down to a six-month low and job openings are flattening. Companies appear to be putting the brakes on hiring in anticipation of a slowdown."
However, it was not only Artificial Intelligence (AI) that led to the layoffs. The report stated that business closure was one of the most common reasons for the mass layoffs in May which resulted in 19,600 people losing their jobs. Market and economic conditions are said to be the reason for 14,600 people losing their jobs while "no reason provided" for 12,900. Disney Layoffs Continue! Disney's Pixar Animation Studio Lays Off 75 Employees, 'Lightyear' Director and Producer Among Those Fired.
The report also said that during the five months period from January to May 2023, economic conditions were also one of the key reasons that were cited for nearly 2,06,300 people losing their jobs. Meanwhile, the development comes a day after ZoomInfo, a US-based marketing technology company announced to lay off about 3 per cent of its workforce globally.
The report has also come at a time when businesses are said to be "adopting and adapting" to AI technology in order to automate work including writing, administrative and clerical work among others.
(The above story first appeared on LatestLY on Jun 05, 2023 08:15 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).