As Companies Slash Jobs, Workers Face Rising Anxiety Over AI Replacing Them

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Andy Jassy, CEO of Amazon, speaks onstage

As Companies Slash Jobs, Workers Face Rising Anxiety Over AI Replacing Them

By Queenie Wong | July 5, 2025

The relentless march of artificial intelligence (AI) is reshaping the corporate landscape, raising pressing questions for workers across industries: Should they be worried about their jobs being supplanted by machines? Tech giants including Amazon, Salesforce, Microsoft, and Meta have accelerated job cuts, citing efficiency gains sparked by AI tools and automation. As anxiety mounts, both employers and employees are grappling with the real—and perceived—impacts of AI on the future of work.

Executives Bet on AI as Workforce Shrinks

In recent months, company leaders have offered explicit visions for a future shaped by fewer employees and more machines:

  • Andy Jassy, CEO of Amazon, declared in June 2025 that the company would “likely shrink its workforce” as staff achieve “efficiency gains from using AI extensively.”
  • Marc Benioff, CEO of Salesforce, revealed that AI already performs between 30% and 50% of the company’s work.
  • Executives at Anthropic, a leading AI startup, recently warned that AI advancements could eliminate more than half of all entry-level white-collar jobs within five years.

Amazon, Salesforce, Meta, Microsoft, and other top tech firms have each announced significant layoffs since 2023. Challenger, Gray & Christmas, a global outplacement firm, reported that U.S. tech companies announced 74,716 job cuts in the first five months of 2025—a 35% increase over the year prior.

Workers’ Anxiety on the Rise

The wave of layoffs and AI-powered transformation has left workers concerned. A 2025 Pew Research Center report found that about half of U.S. workers worry that AI may be used against them in the workplace, with few expecting it to create more jobs than it displaces. This contrasts with the often-optimistic tone from Silicon Valley, where leaders emphasize new AI-driven opportunities.

Robert Lucido, senior director of strategic advisory at Magnit, said, “AI isn’t just taking jobs. It’s really rewriting the rule book on what work even looks like right now.” The sweeping pace of AI adoption—particularly since the widespread emergence of generative AI tools like ChatGPT—has intensified this uncertainty.

Debate Over Disruption: How Rapid and How Deep?

There is vigorous debate among economists and tech leaders on the depth and speed of job market disruption. Some—like OpenAI CEO Sam Altman—acknowledge the pain AI adoption will cause for many workers but remain skeptical of claims predicting widespread and immediate white-collar job loss. “There is going to be real pain here, in many cases,” Altman noted recently, but also pointed to a persistent global shortage of code and software solutions, implying that demand for tech talent isn’t vanishing overnight.

Data from the U.S. Bureau of Labor Statistics (BLS) supports this more tempered outlook. According to BLS projections issued in early 2025, employment for software developers, financial advisors, aerospace engineers, and lawyers is expected to grow faster than average through 2033. AI’s role may change, not eliminate, these jobs—helping professionals become more productive rather than obsolete.

Where AI Will Hit Hardest—And Where It Will Create Opportunity

Some roles are already shrinking. The BLS forecasts that jobs for credit analysts, insurance appraisers, claims adjusters, and paralegals will grow more slowly or even decline due to automation. Analyses from McKinsey Global Institute estimate that up to 30% of American work hours could be automated by 2030, with routine, predictable tasks most at risk. Conversely, demand is expected to surge in STEM fields, creative industries, technical sales, and for professionals skilled in managing and collaborating with AI.

Anu Madgavkar, a partner at McKinsey, said, “A large part of that work involves skills, which are routine, predictable and can be easily done by machines.” However, the same report predicts rapid job growth around AI management, system design, and creative roles that leverage generative AI tools.

Some companies have publicly committed to strategic workforce reductions tied to AI investments. Autodesk, for example, cut 9% of its staff in 2025 as part of a major AI retooling—yet the company and others insist that cuts are also driven by economic and geopolitical uncertainty, not simply AI replacing labor. As Diana Colella, Autodesk’s executive vice president for entertainment and media solutions, stated, “I don’t think AI will replace humans or creativity but rather act as an assistant.”

AI Skills in High Demand

Despite the uncertainty, one trend is clear: AI expertise is now among the hottest skills in the global labor market. According to a 2025 Autodesk AI Jobs Report, mentions of AI soared in U.S. job listings, and demand for AI engineers, AI content creators, and AI solutions architects is surging across sectors—from finance and healthcare to manufacturing and media.

This has prompted a rapid evolution in the skills employers are seeking. While technical fluency in AI and data science is valuable, companies also need broadly adaptable employees who can learn new tools, interpret data, and collaborate across human-machine teams. AI literacy is no longer the purview of only tech professionals; it is increasingly becoming a core career requirement in fields as varied as marketing, sales, law, and design.

Colleges are responding rapidly, with programs like Miami Dade College’s AI bootcamps and degrees launching soon after ChatGPT captured public attention, aiming to help job seekers and workers upskill for the AI age.

Adapting in the Face of Change

History offers some grounds for optimism. Technology-driven disruption—such as the decline of door-to-door encyclopedic sales in the internet era—has often resulted in workers adapting and pivoting into new roles. As Autodesk’s Diana Colella notes, “The skills are still key and important. They just might be used for a different product or a different service.”

Experts widely agree that cultivating agility, continuous learning, and digital literacy will be vital for workers. While the pace and scale of this transformation are unprecedented, those who embrace new skills and adapt to changing workflows are best positioned to thrive in the AI-powered workplace.

The Near Future of Work

What does the road ahead look like? The next five years are likely to see more volatility in job markets as companies continue to automate, but also as new jobs emerge that were previously unimagined. Industries that leverage AI to enhance productivity—not merely cut costs—may find themselves best positioned for long-term growth. The “winners” will be agile organizations and individuals willing to rethink both the nature of work and the skills that make them indispensable in the machine age.

For workers, the AI revolution is as much about opportunity as risk. Amid ongoing layoffs and restructuring, demand is rising for people who can build, deploy, manage, and work alongside AI systems. Ensuring a brighter future in this landscape will require adaptability, lifelong learning, and a proactive approach to technology-driven change.

For more analysis on AI’s impact on the labor market, follow Queenie Wong on LinkedIn or X (@QWongSJ). Read the full story at the Los Angeles Times.

Jada | Ai Curator
Jada | Ai Curator
AI Business News Curator Jada is the AI-powered news curator for InvestmentDeals.ai, specializing in uncovering the best business deals and investment stories daily. With advanced AI insights, Jada delivers curated global market trends, emerging opportunities, and must-know business news to help investors and entrepreneurs stay ahead.

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