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AI Layoffs: Replacement, Reskilling, or Reorg

Liza Adams · May 21, 2025 ·

More companies are increasingly citing AI as they announce layoffs. But are they truly replacing humans with AI or are other forces at play? I was curious.

So I put ChatGPT Deep Research to work: Which companies mentioned AI in their layoff statements this past year? How did they frame it? And to what extent was AI actually replacing human jobs?

After analyzing more than 30 sources in just a few minutes, ChatGPT delivered a comprehensive report. Then I worked with Claude to create the infographic below.

What immediately jumps out is the scale: 38,000+ jobs cut across 8 major companies with AI cited as a factor. But there’s something more interesting here.

Some companies are reorganizing their teams around AI. Intuit cut 10% of staff but plans to hire a similar number in AI-focused roles. Salesforce is eliminating some positions while adding 2,000 new “AI salespeople.” They’re also investing in upskilling their current employees to use AI tools. This mix of restructuring and retraining shows how businesses are trying to adapt fast.

There’s also a spectrum of AI’s impact. I asked ChatGPT to rate the impacts using a 5-point scale, from AI as vague justification (1) to full replacement of roles (5). Most companies fall around a “4” with AI as part of a strategic shift. But there are clear “5s” with CrowdStrike and Chegg, where AI is directly replacing human jobs.

And then there’s the messy middle. Take Klarna:

  • ► 2022–2023: They cut ~700 customer service jobs, replacing them with AI. The CEO said, “AI can already do all of the jobs that we, as humans, do.”

  • ► 2024–2025: They reversed course. AI hurt service quality and customer trust. They’re now rehiring humans so customers can “always have a human if you want.”

I believe that we’ll see more of these overcorrections as companies try to keep up with AI’s pace and only realize the human consequences after.

For perspective, 60% of today’s jobs didn’t exist in 1940 (more on this here, https://lnkd.in/gSNPwyRR). There were no social media managers or software developers in 1940. Jobs evolve. Some disappear. But now the pace is exponential.

In my mind, the more important question is how quickly we can reskill people and create new roles. The focus needs to shift to training, human change management, and building thoughtful human–AI teams.

We’ll have a better shot at new opportunities and thrive in the AI era when we know how to guide and work with AI responsibly.

Would love to hear your thoughts.

See original post here

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