The tech industry in the United States is witnessing a concerning surge in layoffs, causing distress among IT professionals across the nation. According to a recent study by Authority Hacker, a staggering 89% of IT professionals in the US are worried about potential job losses in 2024, with the looming influence of Artificial Intelligence (AI) intensifying their concerns.
As layoffs sweep across big tech corporations and startups, the specter of unemployment looms large, adding to the anxieties of millions of employees.
In the first two months of 2024 alone, 193 companies have laid off nearly 50,000 employees, underscoring the widespread impact of ongoing organizational reshuffles. Even in March, seven companies had already terminated close to 500 employees, signaling a worrying trend of rapid organizational resizing and restructuring.
Also Read: IMF Chief Highlights Impact of AI on Jobs: Risks and Opportunities
AI Effects on Tech Layoffs In US
The report highlights that the tech sector is bearing the brunt of these layoffs, with 54.58% of workers expressing growing concerns about job security. IT Services and Data professionals (89.66%) and Software Development workers (74.42%) exhibit the highest levels of concern about their employment prospects.
The rapid advancement of Artificial Intelligence (AI) technology is identified as a major contributor to job insecurities, as 72.42% of surveyed workers admit feeling uneasy about AI’s impact on their roles in the next five years. This sentiment is particularly pronounced among C-level executives (85%) and Directors (78.83%).
The report further highlights size-related concerns, revealing that employees in larger companies (500–1000 employees) are particularly vulnerable, with 74.33% feeling at risk of job loss. Sectors heavily reliant on computers, such as software (67.44%), finance (67.75%), and human resources (64.29%), express high levels of concern, while those emphasizing human interactions, like education (44.04%), and real estate (44.68%), are comparatively less troubled by AI’s impact. Read the Authority Hacker Review 2024: Why TASS Works
Must Read: How To Make a Career in Artificial Intelligence? Check Top AI Jobs, Salary, and Skills
What are the New Job Opportunities in the US
Despite these challenges, there is optimism about the potential for AI to create new opportunities. The World Economic Forum forecasts that AI could generate as many as 97 million new roles by 2025. To navigate this evolving landscape, upskilling in AI is imperative.
Incorporating AI tools into daily operations, honing interpersonal skills like communication and empathy, nurturing professional networks, and cultivating specialized expertise and personal branding are essential strategies to withstand the AI wave. While the fear of job displacement persists, executives anticipate AI to augment rather than replace job roles, underscoring the importance of AI upskilling in mitigating unemployment risks.
Also Read: How does AI impact jobs and wages? Check Insights from European Central Bank
