Particle.news
Download on the App Store

Companies Double Down on AI as Layoffs and Hiring Freezes Spread, Squeezing Entry-Level Roles

Fresh data shows weak short‑term returns for many AI initiatives, casting doubt on deep cuts during an early learning phase.

Overview

  • Stanford payroll data shows a roughly 13% relative employment decline for 22–25-year-olds in AI‑exposed occupations, even as overall employment and wages remain stable.
  • Walmart says it will hold its global workforce at 2.1 million for three years, attributing the plan in part to efficiency gains from AI.
  • Amazon, Microsoft, Target and UPS have announced job cuts or slower hiring, with Amazon planning to eliminate up to 30,000 corporate roles during an efficiency drive.
  • An MIT survey of 300 corporate AI projects found executives reported 95% produced zero return on investment, highlighting implementation challenges.
  • Some firms are combining blunt messaging with reskilling and new hiring tactics, as Rokt warned up to 45% of roles could be displaced, provided AI tools and training, and shifted roughly 90% of recruiting to recent graduates.