The long-predicted wave of job losses caused by artificial intelligence has not yet arrived, even as major US tech companies cut 140,000 positions while increasing spending on AI. Data from the Financial Times shows that layoffs in the tech sector have risen sharply this year, with firms such as Amazon, Google, and Microsoft shrinking workforces even as they pour billions into AI development. Yet a recent analysis in The Guardian argues the 'AI jobs apocalypse' remains a distant prospect.
Confusion stems from two conflicting trends: companies slashing jobs in some areas while hiring for AI-related roles. The 140,000 cuts represent a significant number, but economists note they are concentrated in departments being restructured, not necessarily eliminated by AI. Many of the laid-off workers are in sales, marketing, and administrative functions, while demand for machine learning engineers and data scientists has surged.
The Guardian's reporting highlights that most experts do not expect AI to replace entire occupations soon. Instead, it will change tasks within jobs, requiring reskilling. For example, customer service agents may use AI tools to handle more complex queries rather than being replaced. The Financial Times also points out that overall US employment remains strong, with unemployment near historic lows.
However, the impact is uneven. Workers in routine clerical roles face higher risk, while those in fields requiring creativity, problem-solving, or physical presence — such as nursing or construction — are less exposed. The pace of AI adoption varies by industry, and many companies are still experimenting rather than fully automating.
What to watch next: the effectiveness of retraining programmes and whether AI investment translates into broader productivity gains that boost hiring in other sectors. For now, the evidence suggests a gradual transition rather than a sudden upheaval, but the direction of travel is clear — and workers will need to adapt.