The age of artificial intelligence is revealing a striking contradiction: while tech giants trim thousands of jobs, they are simultaneously investing heavily in AI-driven hiring. This year alone, companies such as Amazon, Microsoft, and Salesforce have announced major layoffs while accelerating their AI ambitions.
At Amazon, roughly 14,000 positions were cut despite the company posting record profits — the workforce reduction affected about 4% of its white-collar base. Microsoft and Salesforce followed similar patterns. Analysts point to AI as the driver: automation of routine tasks, increased productivity, and shifting business models. But some economists caution that the layoffs may reflect broader industry corrections rather than pure AI disruption.
Meanwhile, the so-called “new economy” is taking shape. Companies like Salesforce stopped thousands of support-role jobs, yet concurrently hired thousands in sales, account management, and AI-integration roles. These jobs demand different skills – prompt engineering, model deployment, data operations.Another notable trend: physical infrastructure supporting AI – data-centres, server farms, cloud-hardware setups – is generating jobs previously unseen. Construction workers, technicians and facility staff now find employment in what’s being called “the new steel and concrete.”
The broader lesson? It is no longer about whether AI will take jobs, but which jobs it will take – and which it will create. Workers with outdated skills may lose ground, while those who adapt – upgrading toward AI-relevant roles – stand to gain. The transition is happening fast, and for many, the race to remain relevant is very real.
