Workforce Impact (from business side) Weekly AI News
July 28 - August 6, 2025This week brought major updates about how AI agents are reshaping workplaces worldwide. In the U.S., July saw 62,075 job cuts – a 140% increase from last year. AI adoption was directly linked to over 10,000 layoffs in July alone, with tech companies cutting 89,000 jobs this year. Retailers also faced 80,000+ cuts due to tariffs and AI-driven cost-cutting.
Jobs at Risk Microsoft’s recent study identified 40 roles most vulnerable to AI, including customer service reps, data analysts, and marketing specialists. These jobs involve tasks like answering emails, processing data, or creating basic content – all areas where AI tools now perform well. For example, entry-level corporate jobs for recent graduates dropped 15% in the past year, while AI mentions in job postings surged 400%.
Business Strategies Companies are shifting budgets from hiring to AI software purchases. Workforce consultant Josh Bersin noted: *'There’s a blank check to buy AI tools, freezing hiring'*. This trend explains why job listings for young workers have declined sharply. Meanwhile, Ford’s CEO predicted replacing *'half of all white-collar workers'* with AI.
U.S. Policy Changes On July 23, the U.S. launched the AI Action Plan, prioritizing deregulation and funding for AI-focused states. This could create new opportunities for companies investing in AI but may disadvantage states with stricter regulations. The plan also aims to boost AI exports to allies while restricting tech to competitors.
Expert Views Harvard researcher Christopher Stanton warns that 35% of white-collar tasks overlap with AI capabilities, risking wage stagnation or job loss. However, early studies show AI might help lower-performing workers by filling knowledge gaps. Dario Amodei of Anthropic predicts half of entry-level white-collar jobs in tech, finance, and law could disappear.
Global Implications While U.S. policies dominate headlines, companies worldwide face similar pressures. TCS (India) cut 12,200 jobs amid AI adoption, while Scale AI (U.S.) laid off 200 workers despite a $14.3B Meta deal. These moves highlight the global race to balance AI investment with workforce costs.