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Tech CEOs Split Over AI's Potential to Eliminate Half of Entry-Level White-Collar Jobs

Recent workforce cuts at Microsoft, matched by layoffs at CrowdStrike, illustrate AI's impact on staffing against the backdrop of surging graduate unemployment.

FILE: Marc Benioff, CEO of Salesforce, walks with other attendees as they leave a morning session at the Sun Valley Conference on July 12, 2023, in Sun Valley, Idaho. 
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Overview

  • Anthropic CEO Dario Amodei warns AI could eliminate up to 50% of entry-level white-collar jobs within five years, potentially raising unemployment by 10–20%.
  • Microsoft cut 3% of its global workforce and CrowdStrike reduced headcount by 5%, both attributing those layoffs to accelerated AI integration.
  • Salesforce CEO Marc Benioff rejects dire job-loss forecasts even as his company shifts 500 support roles to AI-driven positions and slows engineer hiring.
  • Unemployment among recent college graduates climbed to 5.8% in Q1—the highest since 2021—prompting some firms to test tasks with AI before recruiting human candidates.
  • Experts propose measures such as a revenue-based “token tax” on AI companies, expanded retraining programs and universal basic income to soften workforce disruption.