AI Now Displacing Over 10,000 People Monthly

Metaverse Planet August 4, 2025Last Updated: August 27, 2025

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The fear of job losses due to artificial intelligence (AI) is no longer just a warning; it’s becoming our new reality. A recent report indicates that thousands of people are losing their jobs every month because of AI.

The explosive growth in artificial intelligence is clearly set to create a significant societal transformation, with unemployment being one of its most critical aspects. As experts have warned for several years, the rise of AI is expected to lead to millions becoming unemployed. Indeed, tens of thousands have already started losing their jobs to AI.

A new report released by the U.S.-based consulting firm Challenger, Gray & Christmas reveals that over 10,000 employees lost their jobs directly due to AI in July alone. The firm states that the rapid adoption of generative AI tools is among the top five reasons for layoffs in 2024.

According to the report, more than 806,000 job losses occurred in the private sector in July, the highest number since the peak of the pandemic in 2020. The technology sector was hit hardest, with over 89,000 layoffs, marking a 36% increase compared to the same period last year. At least 27,000 of these were directly attributed to the use of AI.

AI’s Impact on Hiring as Well as Layoffs

Hiring is also significantly affected by this trend, posing a serious threat, especially to young job seekers. Data from the career platform Handshake indicates a 15% decrease in entry-level positions available to recent university graduates compared to last year. Simultaneously, the use of the term “AI” in job postings has surged by 400% during the same period. This points to a fundamental shift in hiring dynamics. Young people, especially those without expertise in AI, are now finding it much harder to secure jobs.

One of the segments most threatened by artificial intelligence is white-collar workers. Company executives are openly stating that numerous positions are directly susceptible to automation. Amazon CEO Andy Jassy commented last month that “AI will increase efficiency in our corporate workforce, leading to a reduction in employment.” Ford CEO Jim Farley’s statement was even more direct and stark: “Half of white-collar workers in the U.S. will be replaced.”

Artificial intelligence is creating not just a technological revolution, but a socioeconomic one. It appears that the working class will be the losers in this transformation. While technocrats like Sam Altman suggest that AI could lead to a universal basic income even for those who don’t work, these rosy promises don’t align well with our current reality. Indeed, the tens of thousands who have lost their jobs due to AI this year are experiencing firsthand how empty these promises can be.