Syllabus: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment
Recent Layoffs
- Amazon announced a reduction of ~14,000 global corporate workforce; the CEO cited increased AI tools/agents usage.
- TCS is cutting 12,000+ jobs while retraining staff, deploying new technology/AI in new markets.
- Microsoft is laying off ~4% workforce to curb costs amid AI investments, showing a restructuring trend.
- The average employees laid off per company increased: from 221 (2023) to 517 (2025).
- Industry-wise Layoffs
- Hardware companies (Intel, Lenovo) accounted for 28% of all 2025 layoffs, leading sector cuts.
- Retail companies (Amazon, eBay, Wayfair) accounted for 14%; sales (9%), consumer tech (7%) followed.
Nature of Job Displacement
- AI is not directly displacing jobs; investments are reshaping business strategies, prompting workforce restructuring and hiring changes.
- Job displacement indirect consequence of AI integration, not an immediate effect of technology alone.
- Companies are adopting new technologies, prioritising employees with AI-related skills for future workforce needs.
- AI Talent Recruitment
- Significant rise in AI talent recruitment compared to the overall hiring rate across countries in 2024.
- India leads with a relative AI hiring rate of over 33%, followed by Brazil and Saudi Arabia, showing demand.
- AI Skills and Wages
- Wages of AI-skilled workers are 56% higher than the average salary, reflecting high employer value.
- More pronounced in wholesale/retail trade, energy/information, and communication sectors, showing a premium for skills.
- Corporate AI Investment
- 2024: total AI investment $252.3 billion; 13 times higher than a decade ago, showing exponential growth.
- Sharp rise in AI hiring, investments, driving companies to actively restructure workforce, adapting to changes.
Q- “Artificial Intelligence is both a job creator and job destroyer.” Discuss this statement with suitable examples. (10 marks, 150 words)