Artificial intelligence is increasingly influencing layoffs and workforce restructuring at major companies, including Meta, Amazon, Salesforce, and YouTube. While the technology presents efficiency gains, it has raised concerns about a potential disruption to white-collar employment. Goldman Sachs CEO David Solomon emphasized that although AI will create short-term disruption, the American workforce has historically adapted to technological shifts.
Solomon compared AI’s impact to the steam engine’s role in the first industrial revolution. Speaking at the Goldman Sachs 10,000 Small Businesses Summit, he noted that while some jobs may be displaced, new opportunities and businesses are likely to emerge. Nevertheless, he acknowledged the transition could be challenging for affected workers.
AI adoption is advancing rapidly. A Goldman Sachs survey found 37% of bankers’ clients already use AI for regular production, with projections reaching 50% next year and 74% within three years. Generative AI tools such as ChatGPT, which now has 800 million weekly active users, demonstrate capabilities ranging from content creation to fraud detection. OpenAI is reportedly preparing for an IPO potentially valued at $1 trillion.
White-collar roles face particular exposure. Amazon CEO Andy Jassy noted that while recent layoffs were not primarily AI-driven, AI adoption will reduce corporate workforce needs. Meta cut 600 AI team positions as part of internal restructuring, and YouTube has offered voluntary buyouts linked to AI-focused changes. Chegg is reducing nearly half its workforce due to declining demand influenced by ChatGPT and the company’s own AI integration.
AI-linked layoffs tracked by Challenger, Gray & Christmas totaled 17,375 through September, under 2% of all announced cuts. Additional reductions linked to unspecified technology updates may also reflect AI influence. Solomon and other experts expect displaced white-collar roles to be offset by new positions elsewhere in the economy, though entry-level jobs could see sharper declines, according to Anthropic CEO Dario Amodei.
Federal Reserve Chairman Jerome Powell acknowledged that AI is affecting hiring and layoffs, particularly in tech, media, and telecom. Goldman Sachs economists estimate AI may reduce headcount by 4% over the next year, potentially rising to 11% over three years, with customer service jobs most at risk.
While the AI boom generates excitement, Solomon warned of potential market overvaluation and gradual corrections. Despite anticipated disruptions, the technology’s transformative impact on business operations and the broader labor market remains substantial, with adaptation expected to follow historical patterns.
