Companies in sectors ranging from airlines to technology are increasingly citing artificial intelligence (AI) as a reason for job losses

Companies in various sectors, from airlines to technology, are increasingly citing artificial intelligence (AI) as a reason for job cuts. For example, Germany's Lufthansa plans to lay off 4,000 employees by the end of the decade, emphasizing the growing use of AI. Denmark's ING Groep NV also noted the possible threat of 1,000 jobs due to the introduction of digitalization, and South Korea's Krafton announced a hiring freeze.

Source Minfin

According to Challenger, Gray & Christmas, 31,039 AI-related layoffs were recorded in the US in October, accounting for about 20% of the total number of such cases. For the year, the total number of AI-related layoffs exceeded 48,000. The growth of automation and efficiency provided by AI is becoming a major argument for businesses formulating strategies for layoffs and position freezes.

This trend is causing concern among policymakers and experts, who question whether companies are really rethinking their operations because of AI or simply blaming technology for achieving other business goals. Even within large corporations such as Amazon and Microsoft, the reasons for the downsizing may be more complex than just the impact of technology. The interpretation of this phenomenon may affect the labor market in the coming years, as automation and staff reductions are predicted to continue to grow.