The double-edged sword of AI: How tech's new era is shaping the job market
If you read the typical 2025 mass layoff notice from a tech industry CEO, you might think that artificial intelligence cost workers their jobs.
The reality is more complicated, with companies trying to signal to Wall Street that they're making themselves more efficient as they prepare for broader changes wrought by AI.
A new report Wednesday from career website Indeed says tech job postings in July were down 36% from their early 2020 levels, with AI one but not the most obvious factor in stalling a rebound.
ChatGPT's debut in late 2022 also corresponded with the end of a pandemic-era hiring binge, making it hard to isolate AI's role in the hiring doldrums that followed.
'We're kind of in this period where the tech job market is weak, but other areas of the job market have also cooled at a similar pace,' said Brendon Bernard, an economist at the Indeed Hiring Lab.
'Tech job postings have actually evolved pretty similarly to the rest of the economy, including relative to job postings where there really isn't that much exposure to AI.
'That nuance is not always clear from the last six months of tech layoff emails, which often include a nod to AI in addition to expressions of sympathy.
When he announced mass layoffs earlier this year, Workday CEO Carl Eschenbach invited employees to consider the bigger picture: 'Companies everywhere are reimagining how work gets done, and the increasing demand for AI has the potential to drive a new era of growth for Workday.'
Autodesk CEO Andrew Anagnost explained that a need to shift resources to 'accelerate investments' in AI was one of the reasons the company had to cut 1,350, or about 9%, of workers.
The 'Why We're Doing This' section of CrowdStrike CEO George Kurtz's announcement of 5% job cuts said the cybersecurity company needed to double down on AI investments to 'accelerate execution and efficiency.''AI flattens our hiring curve, and helps us innovate from idea to product faster,' Kurtz wrote.
It's not just U.S. companies. In India, tech giant Tata Consultancy Services recently characterized its 12,000 layoffs, or 2% of its workforce, as part of a shift to a 'Future-Ready organization' that would be realigning its workforce and 'deploying AI at scale for our clients and ourselves.'
Even the Japanese parent company of Indeed and Glassdoor has cited an AI shift in its notice of 1,300 layoffs at the job search and workplace review sites.Microsoft, which is scheduled to release its fourth-quarter earnings Wednesday, has announced layoffs of about 15,000 workers this year even as its profits have soared.
Microsoft CEO Satya Nadella told employees last week the layoffs were 'weighing heavily' on him but also positioned them as an opportunity to reimagine the company's mission for an AI era.
Promises of a leaner approach have been welcomed on Wall Street, especially from tech giants that are trying to justify huge amounts of capital spending to pay for the data centers, chips and other components required to power AI technology.
'It's this sort of double-edged sword restructuring that I think a lot of tech giants are encountering in this age of AI, where they have to find the right balance between maintaining an appropriate headcount, but also allowing artificial intelligence to come to the forefront,' said Bryan Hayes, a strategist at Zacks Investment Research.
Google said last week it would raise its budget for capital expenditures by an additional $10 billion to $85 billion. Microsoft is expected to outline similar guidance soon.One thing is clear to Hayes: Microsoft's job cuts improve its profit margin outlook for the 2026 fiscal year that started in July.
But what these broader tech industry layoffs mean for the employment prospects of tech workers can be harder to gauge.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
ILoveQatar.net
9 hours ago
- ILoveQatar.net
Media City Qatar connects with Japan's gaming and content creation industry through Osaka roadshow
Media City Qatar has successfully held a strategic roadshow spanning from Osaka to Tokyo in Japan, engaging top leaders across media, gaming, and creative sectors to scale their businesses in the Middle East through Media City Qatar. The visit was designed to attract Japanese companies to Qatar by offering insight into the country's growing media ecosystem, world-class infrastructure, and tailored business incentives. Led by Eng. Jassim Mohamed Al Khori, CEO of Media City Qatar, the delegation engaged directly with top-level executives, government officials, and creative pioneers throughout the roadshow. From high-profile meetings with organizations such as SEGA, Nintendo, and Sony Interactive Entertainment to curated forums and events, the roadshow was designed to build long-term partnerships and present Media City Qatar as the ideal base for Japanese creative companies looking to scale, with Doha positioned as a central gateway between East and West. The first stop was Osaka, where Media City Qatar hosted a dedicated event on the sidelines of a gaming festival organized by the Japanese Esports Union (JESU). Using Qatar Pavilion at Expo 2025 Osaka platform, the event convened leaders and officials from Japan's gaming industry to explore new pathways for growth and collaboration. The delegation outlined their vision of Media City Qatar as a next-generation media hub. Further, Naohiro Kaji from Japan's Ministry of Economy, Trade and Industry also shared insights on the country's national strategy to boost the global export of Japanese creative content, including gaming and digital media, while Media City Qatar's Business Development leads presented success stories from existing partnerships and introduced a suite of exclusive incentives available to Japanese companies seeking expansion opportunities into the Middle East through Qatar. In Tokyo, Media City Qatar hosted a landmark forum, held in the presence of H.E. Jaber Jaralla Al-Marri, Ambassador of the State of Qatar to Japan in Tokyo, and attended by more than 450 industry professionals, government officials, ambassadors, content creators and gaming industry leaders. The event served as a platform to explore how Japanese intellectual property can succeed on a global scale with the support of international partners. Eng. Jassim Al Khori delivered the keynote address, highlighting Media City Qatar's offerings, infrastructure and support mechanisms that make Qatar a compelling base for international creators. Other notable moments at the forum included panel discussions with Eiko Mizuno, co-producer of several Qatar–Japan projects, Keishi Otomo, one of Japan's most renowned film directors, and Akira Morii, producer of a Netflix series. This was followed by a conversation with Ken Kutaragi, known as the 'father of PlayStation.' Another panel featured Masato Inui, general director of Ninja Warriors, alongside Shinichiro Tamaki, developer of the Wii game console. The event included a conversation with Nao Udagawa, President of Bandai Namco, who spoke about the global future of Japanese entertainment. Lastly, Thair Khaled Al Anani later took part in a fireside conversation, where he highlighted Media City Qatar's impact on current licensed companies and detailed the tailored incentives designed to support Japanese companies exploring opportunities in Qatar. Following Expo 2025 Osaka, a significant opportunity has arisen to strengthen ties with Japan's most dynamic gaming and content creation businesses. Japan's content exports of books, magazines, films and television now exceed those of semiconductors and steel and rank second only to automobiles. The updated Cool Japan Strategy aims to more than triple these exports by 2033. Qatar's strategic location between East and West positions it as a key gateway for Japanese companies in gaming animation and production seeking to expand globally. With more than 250 licensed companies Media City Qatar provides the infrastructure incentives and platform to support innovation and collaboration helping shape the future of media from Qatar, in line with Qatar National Vision 2030.
Qatar Tribune
20 hours ago
- Qatar Tribune
Media City Qatar organises strategic roadshow in Japan
Tribune News Network Doha Media City Qatar has successfully held a strategic roadshow spanning from Osaka to Tokyo in Japan, engaging top leaders across media, gaming, and creative sectors to scale their businesses in the Middle East through Media City Qatar. The visit was designed to attract Japanese companies to Qatar by offering insight into the country's growing media ecosystem, world-class infrastructure, and tailored business incentives. Led by Eng. Jassim Mohamed Al Khori, CEO of Media City Qatar, the delegation engaged directly with top-level executives, government officials, and creative pioneers throughout the roadshow. From high-profile meetings with organizations such as SEGA, Nintendo, and Sony Interactive Entertainment to curated forums and events, the roadshow was designed to build long-term partnerships and present Media City Qatar as the ideal base for Japanese creative companies looking to scale, with Doha positioned as a central gateway between East and West. The first stop was Osaka, where Media City Qatar hosted a dedicated event on the sidelines of a gaming festival organized by the Japanese Esports Union (JESU). Using Qatar Pavilion at Expo 2025 Osaka platform, the event convened leaders and officials from Japan's gaming industry to explore new pathways for growth and collaboration. The delegation outlined their vision of Media City Qatar as a next-generation media hub. Further, Naohiro Kaji from Japan's Ministry of Economy, Trade and Industry also shared insights on the country's national strategy to boost the global export of Japanese creative content, including gaming and digital media, while Media City Qatar's Business Development leads presented success stories from existing partnerships and introduced a suite of exclusive incentives available to Japanese companies seeking expansion opportunities into the Middle East through Qatar. In Tokyo, Media City Qatar hosted a landmark forum, held in the presence of Ambassador of the State of Qatar to Japan in Tokyo, HE Jaber Jaralla Al-Marri, and attended by more than 450 industry professionals, government officials, ambassadors, content creators and gaming industry leaders. The event served as a platform to explore how Japanese intellectual property can succeed on a global scale with the support of international partners. Eng. Jassim Al Khori delivered the keynote address, highlighting Media City Qatar's offerings, infrastructure and support mechanisms that make Qatar a compelling base for international creators. Other notable moments at the forum included panel discussions with Eiko Mizuno, co-producer of several Qatar–Japan projects, Keishi Otomo, one of Japan's most renowned film directors, and Akira Morii, producer of a Netflix series. This was followed by a conversation with Ken Kutaragi, known as the 'father of PlayStation.' Another panel featured Masato Inui, general director of Ninja Warriors, alongside Shinichiro Tamaki, developer of the Wii game console. The event included a conversation with Nao Udagawa, President of Bandai Namco, who spoke about the global future of Japanese entertainment. Lastly, Thair Khaled Al Anani later took part in a fireside conversation, where he highlighted Media City Qatar's impact on current licensed companies and detailed the tailored incentives designed to support Japanese companies exploring opportunities in Qatar. Following Expo 2025 Osaka, a significant opportunity has arisen to strengthen ties with Japan's most dynamic gaming and content creation businesses. Japan's content exports of books, magazines, films and television now exceed those of semiconductors and steel and rank second only to automobiles. The updated Cool Japan Strategy aims to more than triple these exports by 2033. Qatar's strategic location between East and West positions it as a key gateway for Japanese companies in gaming animation and production seeking to expand globally. With more than 250 licensed companies Media City Qatar provides the infrastructure incentives and platform to support innovation and collaboration helping shape the future of media from Qatar, in line with Qatar National Vision engagements in Osaka and Tokyo included high-level meetings with SEGA, Nintendo, and Sony Interactive Entertainment, as well as 450+ person forum in Tokyo, featuring figures in gaming, and content creation
Qatar Tribune
20 hours ago
- Qatar Tribune
The double-edged sword of AI: How tech's new era is shaping the job market
Agencies If you read the typical 2025 mass layoff notice from a tech industry CEO, you might think that artificial intelligence cost workers their jobs. The reality is more complicated, with companies trying to signal to Wall Street that they're making themselves more efficient as they prepare for broader changes wrought by AI. A new report Wednesday from career website Indeed says tech job postings in July were down 36% from their early 2020 levels, with AI one but not the most obvious factor in stalling a rebound. ChatGPT's debut in late 2022 also corresponded with the end of a pandemic-era hiring binge, making it hard to isolate AI's role in the hiring doldrums that followed. 'We're kind of in this period where the tech job market is weak, but other areas of the job market have also cooled at a similar pace,' said Brendon Bernard, an economist at the Indeed Hiring Lab. 'Tech job postings have actually evolved pretty similarly to the rest of the economy, including relative to job postings where there really isn't that much exposure to AI. 'That nuance is not always clear from the last six months of tech layoff emails, which often include a nod to AI in addition to expressions of sympathy. When he announced mass layoffs earlier this year, Workday CEO Carl Eschenbach invited employees to consider the bigger picture: 'Companies everywhere are reimagining how work gets done, and the increasing demand for AI has the potential to drive a new era of growth for Workday.' Autodesk CEO Andrew Anagnost explained that a need to shift resources to 'accelerate investments' in AI was one of the reasons the company had to cut 1,350, or about 9%, of workers. The 'Why We're Doing This' section of CrowdStrike CEO George Kurtz's announcement of 5% job cuts said the cybersecurity company needed to double down on AI investments to 'accelerate execution and efficiency.''AI flattens our hiring curve, and helps us innovate from idea to product faster,' Kurtz wrote. It's not just U.S. companies. In India, tech giant Tata Consultancy Services recently characterized its 12,000 layoffs, or 2% of its workforce, as part of a shift to a 'Future-Ready organization' that would be realigning its workforce and 'deploying AI at scale for our clients and ourselves.' Even the Japanese parent company of Indeed and Glassdoor has cited an AI shift in its notice of 1,300 layoffs at the job search and workplace review which is scheduled to release its fourth-quarter earnings Wednesday, has announced layoffs of about 15,000 workers this year even as its profits have soared. Microsoft CEO Satya Nadella told employees last week the layoffs were 'weighing heavily' on him but also positioned them as an opportunity to reimagine the company's mission for an AI era. Promises of a leaner approach have been welcomed on Wall Street, especially from tech giants that are trying to justify huge amounts of capital spending to pay for the data centers, chips and other components required to power AI technology. 'It's this sort of double-edged sword restructuring that I think a lot of tech giants are encountering in this age of AI, where they have to find the right balance between maintaining an appropriate headcount, but also allowing artificial intelligence to come to the forefront,' said Bryan Hayes, a strategist at Zacks Investment Research. Google said last week it would raise its budget for capital expenditures by an additional $10 billion to $85 billion. Microsoft is expected to outline similar guidance thing is clear to Hayes: Microsoft's job cuts improve its profit margin outlook for the 2026 fiscal year that started in July. But what these broader tech industry layoffs mean for the employment prospects of tech workers can be harder to gauge.
