Record AI Spending Collides with Deepening U.S. Job Cuts
· Source: supplychainbrain.com
In short
While major tech companies like Microsoft, Meta, Alphabet and Amazon are projected to invest $380 billion in AI infrastructure by end of 2025, U.S. job cuts have surged 175% year-over-year in October. Economist Rebecca Patterson explains that companies are offsetting AI investments with personnel cost cuts, potentially leading to 'jobless growth' where GDP remains strong but employment stagnates. This trend could create economic disparities between tech sector beneficiaries and displaced workers, risking a transition from jobless expansion to modest recession.
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In the issue of week 46, 2025: AI Scales Up: Autonomous Supply Chains Drive 35% Productivity Gains
Tags: AI, job-cuts, restructuring, labor, automation, economics