In the corridors of America’s corporate giants, a quiet revolution is underway. Artificial intelligence, once hailed as a productivity booster, is now the harbinger of widespread job cuts. According to recent reports from Nikkei, over 950,000 jobs have been slashed as companies pursue ‘jobless growth’—a phenomenon where economic output rises without corresponding employment gains. This trend, fueled by AI efficiencies, is reshaping the U.S. labor market in profound ways.

Labor reports cited by Nikkei, shared via posts on X by editor @NaoyaYoshino, warn of imminent layoffs across sectors. The push for automation comes amid economic pressures, with firms like Amazon and Intel leading the charge. As AI integrates deeper into operations, the human cost is becoming increasingly apparent.

The Automation Wave Hits Hard

A study from the New York Federal Reserve, as reported by USA Today, reveals that AI is prompting service companies to curb hiring rather than initiate mass layoffs. However, the net effect is a shrinking workforce. ‘AI is leading some service companies to reduce hiring but causing few layoffs,’ the study notes, highlighting a subtle yet significant shift.

Global firms are ramping up job cuts, per Reuters. Blue-chip companies such as Amazon, Nestle, and UPS are reining in spending while embracing AI to replace jobs. The report states: ‘Companies around the globe have ramped up job cuts… as AI-focused tech companies start to replace jobs with automation.’

Entry-Level Jobs Vanish

The impact is particularly acute for recent graduates. Fortune reports that AI-driven layoffs are rising, with over 10,000 job cuts in 2025 directly linked to automation. ‘AI is becoming a major driver of workforce reductions,’ the article emphasizes, shrinking opportunities for entry-level positions.

Amazon’s recent reorganization, detailed by NBC News, will eliminate 14,000 jobs, with AI cited as a leading cause. ‘Amazon announced a reorganization that will result in the elimination of 14,000 jobs — and said AI is a leading cause,’ the coverage explains.

White-Collar Workers at Risk

A broader list of layoffs includes companies like Starbucks, Meta, Oracle, Nike, and Carter’s, according to Business Insider. ‘Layoffs have hit companies from Starbucks to Meta to Intel this year amid a backdrop of cost-cutting and technological change.’

JPMorgan’s analysis, also via Business Insider, warns that AI could spark a ‘jobless recovery’ by targeting white-collar knowledge workers. ‘The next job market downturn could be worse than expected, thanks to AI taking jobs from white-collar “knowledge workers,”‘ the report from JPMorgan states.

Long-Term Economic Shifts

Goldman Sachs explores AI’s global workforce impact in a piece on their site: ‘AI-related innovation may cause near-term job displacement while also ultimately creating new opportunities elsewhere,’ as per Goldman Sachs.

Further insights from Business Insider highlight Goldman’s warning of ‘jobless growth’ in the U.S.: ‘Job growth outside the healthcare industry has turned negative recently, and corporate management teams are turning to AI to reduce labor costs.’

Gen Z Faces Hiring Nightmares

Economists at Goldman, as reported by Fortune, describe ‘jobless growth’ as the new normal for Gen Z. ‘History also suggests that the full consequences of AI for the labor market might not become apparent until a recession hits.’

A potential recession could test AI’s role in sustaining jobless growth, per another Fortune article: ‘A recession could test whether AI is truly fueling an economy with “jobless growth”.’

Beyond the Numbers: Sector Impacts

While tech and services lead the layoffs, other sectors feel the ripple effects. Posts on X from Nikkei editor @NaoyaYoshino, though focused on global trade, underscore broader economic tensions that amplify AI-driven efficiencies. For instance, trade wars and international pressures push U.S. firms toward cost-cutting via automation.

Real-time sentiment on X reflects growing concern, with discussions around AI’s impact on the technology industry in 2025 highlighting fears of sustained jobless growth. Users note the disconnect between GDP gains and employment stagnation.

Corporate Strategies and Future Outlook

Companies are not just reacting but proactively restructuring. Amazon’s moves exemplify this, blending AI adoption with workforce optimization. Experts predict that without policy interventions, jobless growth could persist, widening inequality.

As AI evolves, the balance between innovation and employment remains precarious. Industry insiders must watch how firms navigate this terrain, potentially redefining work in the AI era.