Tech Layoffs Surge as AI Replaces Office Jobs

AI-driven layoffs are becoming a weekly occurrence, signalling a profound shift in the global workforce.

In May alone, Microsoft cut over 6,000 software engineers as it ramped up AI-powered code generation.

IBM followed suit, slashing thousands of HR positions.

Earlier in the year, Meta laid off 3,600 employees—roughly 5% of its staff—as it pivoted to an AI-first strategy.

These are not isolated events; they reflect a broader transformation reshaping employment across industries.

Just last week, unemployment claims rose to their highest level since last fall, as major employers like Procter & Gamble and Starbucks announced upcoming cuts.

While some blame may rest with trade tensions under Trump, the real disruptor appears to be the accelerating rise of AI systems that are rapidly automating routine white-collar work.

The AI Revolution Might Not Be All That Good

While today’s AI is already reshaping industries, the looming arrival of artificial general intelligence (AGI) promises an even deeper transformation.

Unlike current systems, AGI would be able to reason, learn, and adapt across any domain—mirroring human intelligence without the need for reprogramming.

Though once considered decades away, AGI now appears to be accelerating toward us.

Dario Amodei, CEO of Anthropic, recently reiterated his prediction that AGI-level systems could emerge within two to three years.

Former OpenAI researcher Daniel Kokotajlo, who resigned over concerns about safety oversight, estimates AGI could arrive as early as 2027.

Ray Kurzweil, Google's Director of Engineering, still holds firm to his long-standing 2029 prediction, echoed by Ben Goertzel of SingularityNET, who believes we remain “on track” for human-level AGI—and possibly superintelligence soon after.

Goertzel noted:

“I think it’ll only be a few years from a human-level AGI to a super AGI, because that human-level AGI will be able to program and invent new chips and invent new forms of networking.”

Many experts warn that the shift to AGI could destabilise traditional employment structures, displacing not just administrative or technical roles, but high-level professionals: doctors, lawyers, scientists, executives—even the entrepreneurs now racing to develop these systems.

AGI could render entire categories of work obsolete, triggering a fundamental reordering of the global economy.

Job Disruption from AI is Nearer Than You Think

AGI is not just about automating routine tasks—it is about eclipsing human capabilities across nearly every field.

Goertzel said:

“Once AI becomes even slightly smarter than humans, we’ll see massive unemployment. It may start with junior white-collar jobs, but I think it will quickly extend to plumbers, electricians, janitors—everyone.”

With the ability to reason, learn, and adapt, AGI could soon outperform humans in areas once thought untouchable.

Goertzel points out that AI has already surpassed doctors in diagnostic accuracy for years.

He continued:

“Entry-level jobs have no one defending them. Older people in powerful positions can protect their roles—and they’re the ones controlling how AI is rolled out. So, of course, they’re not going to replace themselves with AI.”

Yet industries like healthcare have largely resisted disruption, shielded by institutional inertia and complex licensing systems.

Meanwhile, blue-collar sectors have remained relatively insulated—not because they are future-proof, but because physical robotics has not advanced as quickly as AI in software.

This technological gap explains why white-collar workers, particularly in early-career roles, are facing the sharpest impact.

Amodei warns that this wave of disruption is no longer on the horizon—it is here.

In a recent interview, he projected that up to 50% of entry-level white-collar jobs could vanish within one to five years.

These include foundational roles in law, finance, marketing, consulting, and tech—positions once seen as stepping stones into long-term careers.

As AI increasingly handles tasks like analysis, writing, planning, and decision-making, human involvement is rapidly becoming redundant.

In a separate conversation with CNN, Amodei doubled down: this shift will unfold faster than most societies are ready for, raising urgent questions about workforce preparedness, economic resilience, and the future of human labour.

Amodei stated:

“What is striking to me about this AI boom is that it’s bigger, it’s broader, and it’s moving faster than anything has before. Compared to previous technology changes, I’m a little bit more worried about the labor impact, simply because it’s happening so fast that, yes, people will adapt, but they may not adapt fast enough.”