AI Triggers White‑Collar Job Cuts at Major Firms

AI-driven cuts at major employers — including Amazon, UPS and Target — have accelerated large reductions in white‑collar roles, with many companies planning to operate with permanently smaller human workforces. Analysts and executives, including Anthropic’s Dario Amodei and Ford’s Jim Farley, warn of a near‑term “white‑collar job apocalypse,” particularly for entry‑level office work. Forrester forecasts a wave of rehiring around 2026 as firms that automated prematurely regroup, but much of that work may return at lower pay or be offshored to low‑cost “ghost workers,” and it reports 55% of companies that cut staff for automation later regretted it. The consultancy also warns HR headcount could be sharply reduced as firms deploy AI agents, deepening employee disengagement and creating a widening “culture energy chasm.” AI pioneers caution the speed and scale of change are being underestimated, raising broader safety and societal risks even as markets may rally on anticipated AI productivity gains. Some analyses (including Microsoft) suggest manual labor jobs such as cement masons and firefighters may be more secure than routine desk jobs, and comments from figures like OpenAI CEO Sam Altman — who argued some eliminated roles are not “real work” — have intensified debate over AI’s impact on meaningful employment.