Companies are facing a crunch as boards push CEOs to cut costs by significantly reducing IT staff in favour of AI solutions. With over 238,000 IT layoffs reported in 2024 and continuing into 2025, the shift towards automation is stirring up debates on job security and the future of the workforce.
Key Points
- 238,000 IT jobs were cut in 2024, with an additional 76,000 anticipated in 2025 as companies look to streamline operations.
- Boards are pushing CEOs to adopt AI solutions to replace 20% of their workforce, citing efficiency and cost-effectiveness.
- Major companies like Microsoft and IBM have recently announced significant layoffs, citing AI as a driver for these cuts.
- The shift in workforce dynamics highlights a trend towards selective scaling and a move away from traditional hiring practices.
- AI isn’t just seen as a cost-saving tool, but as a critical component for business growth in the digital age.
Why should I read this?
If you’re involved in the tech industry or have a stake in IT employment, this article sheds light on a crucial trend that could reshape the workforce landscape. With companies looking to AI as a means to cut costs, staying informed on these shifts is vital for understanding future job opportunities and career pathways. Don’t be caught off guard—read up and prepare for what’s next!