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AI is the shiny new toy — why the alarm?

Michie

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Tens of thousands of people have been laid off from their jobs in America. History has seen its share of mass layoffs — sparked by wars, devastating famines, economic collapses, or other seismic disruptions. But today’s crisis feels distinctly modern. In July alone, the technology sector hemorrhaged over 10,000 jobs, marking a jarring 36% surge in layoffs for the industry. The culprit? Artificial intelligence (AI).

A recent report from Challenger, Gray & Christmas (CGC) laid bare the scale of this upheaval. “So far this year,” the report reads, “companies have announced 806,383 job cuts, the highest YTD since 2020 when 1,847,696 were announced. It is up 75% from the 460,530 job cuts announced through the first seven months of last year and is up 6% from the 2024 full year total of 761,358.” CGC Senior Vice President Andrew Challenger pointed to multiple drivers, including the Department of Government Efficiency (DOGE), an initiative launched by President Donald Trump to slash government waste, including what he deemed redundant jobs.

“We are seeing the Federal budget cuts implemented by DOGE impact non-profits and healthcare in addition to the government,” Challenger noted. But it’s not just DOGE. “AI was cited for over 10,000 cuts last month, and tariff concerns have impacted nearly 6,000 jobs this year,” Challenger added. Among these, AI’s grip on the technology sector stands out as the most transformative. According to the report, “Technology is the leading private sector in job cuts.” In fact, “The industry is being reshaped by the advancement of artificial intelligence.”

AI has increasingly been at the forefront of national dialogue. With its advancement and increased use come ethical concerns, significantly uncharted technological territory, and, evidently, even a hard hit on the job market. Last month, Breitbart News reported how AI advancement is affecting kids coming out of college — even describing it as a threat to traditional career paths.

“For graduates,” the outlet wrote, “the competition is fierce. Not only are there fewer jobs, but they’re also up against laid-off junior workers from previous years. Platforms like Handshake report a 15 percent drop in entry-level job postings this year, while applications per job are up 30 percent. Internships are following a similar pattern.” Breitbart added, “The consequences extend beyond individual job seekers. As companies rely more on AI and hire fewer young workers, they risk shrinking the pipeline of talent that will eventually move into higher-level positions.”

The CGC report concluded: while all hiring announcements remain “well below pre-pandemic levels … technology hiring continues to decline, with companies in the sector announcing just 5,510 new jobs in 2025, down 58% from 13,263 in the same period last year.”

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