AI-driven layoffs accelerate as companies push humans aside in favor of automation
- AI threatens jobs across sectors from routine work to skilled professions
- CrowdStrike cuts 500 jobs citing efficiency and AI-driven restructuring
- IBM uses AI to streamline HR while increasing hires in tech roles
Many people worry the rise of AI and robotics could lead to job losses, as machines become increasingly capable of performing tasks faster, cheaper, and more accurately than humans, concerns have grown about the long-term impact on employment, wages, and job security.
Even skilled professions, such as those in healthcare, finance, law, and technology, may not be immune. The growing capabilities of AI suggest that no sector is entirely safe from disruption.
These concerns are no longer hypothetical, they’re becoming reality for some IT workers, after CrowdStrike recently announced it is cutting 500 jobs, which equates to around 5% of its workforce.
Realigning the business
In a memo announcing the cuts, the security firm’s CEO George Kurtz said, “CrowdStrike is defined by our mission to stop breaches, our disciplined execution, and our commitment to protecting customers.”
“Today, our customers are facing an intensifying threat landscape and growing complexity. They trust us to help them move faster and operate more securely. To keep earning that trust, we are evolving how we operate.”
Explained the company would be “realigning” parts of the business “to continue scaling with focus and discipline” and explained that: “AI has always been foundational to how we operate. AI flattens our hiring curve, and helps us innovate from idea to product faster. It streamlines go-to-market, improves customer outcomes, and drives efficiencies across both the front and back office. AI is a force multiplier throughout the business.”
CrowdStrike isn’t the only tech firm cutting jobs because of AI.
The Wall Street Journal reports IBM has, “used artificial intelligence, and specifically AI agents, to replace the work of a couple hundred human resources workers.”
However, as a result of these cuts, it was able to hire more programmers and sales and marketing people.
“While we have done a huge amount of work inside IBM on leveraging AI and automation on certain enterprise workflows, our total employment has actually gone up, because what it does is it gives you more investment to put into other areas,” IBM CEO Arvind Krishna told the publication.
So while AI might be taking some people’s jobs, it’s resulting in an increase of opportunities in other areas.
Krishna also urged the Trump administration to increase, rather than cut, federal AI R&D funding, telling TechCrunch:
“We have been an extremely strong advocate – and this is both the company and me personally – on that federally funded R&D should be increased. That’s the position, which is unequivocal, and we strongly believe in that.”