What Happened in the Tech Sector in 2024 Due to Unregulated AI: A Recap for the Unfamiliar
The unfolding catastrophe of the US workforce: A stark reality in the age of unregulated AI.
As we approach the end of 2024, it’s vital to reflect on a year that marked one of the most turbulent periods for the tech sector—and the broader workforce—driven by the accelerating integration of artificial intelligence (AI). Having kept a close eye on layoff announcements and workforce data throughout the year, the unfolding story reveals the profound human impact of unregulated AI adoption in the United States.
In my blog post, "The Human Cost of Unregulated AI: A Follow-Up on the Labor Crisis" dated July 18, 2024, I sounded the alarm. The data for the first six months of the year had already revealed an alarming trend, with tens of thousands of workers displaced. Yet, a clear governmental response to mitigate these risks was absent, paving the way for continued disruptions—not only in the tech sector but across industries.
Here’s a detailed look at what transpired in the tech world in 2024 and the urgent actions needed to safeguard American workers.
Headlines That Defined the Year in Tech Layoffs
The past year saw stark news headlines that captured the growing anxiety in the workforce. These include:
"Tech job market remains in flux as layoffs continue and experienced workers struggle to get hired" – GeekWire, March 20th 2024
“The tech sector is pouring billions of dollars into AI. But it keeps laying off humans.” -CNN, January 15th 2024
“Tech companies are slashing thousands of jobs as they pivot toward AI”-CBS News, January 25th 2024
Laid Off Tech Worker Suggests That Unemployed People Should Sell Their Blood to Survive: "My chances of obtaining another great-paying [full-time] job are next to zero." -Futurism, July 3rd 2024
"Big Tech not done with layoffs as Google, Amazon announce cuts in 2024" – The Washington Post
"AI is replacing human workers: UPS announces layoffs of 12,000 managers" – Bloomberg
"Google CEO warns of more layoffs in 2024 amid artificial intelligence push" – CBS News
“Necessary” adjustment | Microsoft announces up to 1,500 layoffs, leaked memo blames “AI wave” - hrgrapevine
“PayPal Announces Layoffs as Companies Boost Profits Through AI Job Replacement “ Inc
"Layoffs across the tech sector outpace 2023 as companies reallocate resources toward AI" – Business Insider
A Grim Year of Workforce Reductions: Major Layoffs in Tech
The integration of AI into business operations, often framed as a leap toward efficiency and innovation, left a devastating trail of job losses. Below is a summary of significant layoffs announced in 2024 by major companies:
Google: Over 1,000 employees in engineering and advertising teams, with more layoffs anticipated due to AI reallocation.
Microsoft: 1,900 employees from Azure and Mission Engineering as part of an AI pivot.
Amazon: 1,000 employees across Prime Video, MGM Studios, and Amazon Pharmacy, compounded by "quiet firing" practices.
Meta: Continued layoffs affecting thousands, as the company poured resources into AI development.
PayPal: 2,500 employees, citing increased competition and AI investments.
UPS: 12,000 managerial roles eliminated, replacing them with AI-driven operational systems.
Dell: 6,000 employees, driven by low PC demand and AI operational shifts.
Farfetch: 25% of its workforce, impacting 2,000 employees in an effort to "streamline operations."
Tesla: 14,000 employees, citing duplication of roles and declining sales as factors.
Intel’s announcement of over 15,000 layoffs this year was one of the most striking examples of AI-driven workforce reductions. The company’s decision to downsize by more than 15% of its workforce as part of a $10 billion cost-cutting initiative highlighted the growing trend of prioritizing AI investments over human labor. With plans to “stop non-essential work” and streamline operations, Intel’s move reflects the broader industry shift towards automation and efficiency at the expense of skilled professionals. This announcement underscores the urgent need for safeguards to ensure that technological advancements do not come at the cost of human livelihoods.
These layoffs reflect a troubling reality: AI adoption, while offering operational benefits to companies, has displaced tens of thousands of skilled workers without adequate safety nets in place.
The Human Impact: A Crisis of Jobs, Stability, and Dignity
The cascading effects of these layoffs extend beyond employment. Entire communities, particularly in states like California where the cost of living is high, are now grappling with housing insecurity, financial instability, and a growing mental health crisis. These impacts highlight the failure to strike a balance between technological advancement and human welfare.
A Path Forward: Safeguards the Biden-Harris Administration Can Implement
As the Biden-Harris administration nears the end of its term, it has a crucial opportunity to address this crisis and lay the groundwork for safeguarding workers in the future. Here are some proposed measures:
Cap AI Workforce Replacements: Introduce a federal policy that caps the percentage of workforce replacements companies can attribute to AI and automation. This ensures that humans remain central to the labor market.
Establish the Artificial Intelligence Accountability Act of 2024: Incorporate this act into the U.S. Constitution, mandating federal funding for robust reskilling and upskilling programs to prepare workers for an AI-driven economy.
Provide Tax Incentives: Offer tax breaks to companies that retain their human workforce and invest in employee development.
Encourage Public-Private Partnerships: Foster collaborations between the federal government, private sector, and educational institutions to ensure workforce adaptability in a rapidly evolving job market.
Why We Must Act Now
The time to act is now. The International Monetary Fund (IMF) warned earlier this year that 40% of the global workforce—and up to 60% in developed countries like the U.S.—could be disrupted by unchecked AI adoption. Failure to implement safeguards risks pushing millions of Americans out of the workforce, leading to widespread economic instability and societal unrest.
The next administration, particularly under a Trump-Elon Musk alliance, is likely to prioritize deregulation of AI and automation. This would leave American workers vulnerable, without protections to secure their livelihoods or dignity in an increasingly AI-driven economy.
Conclusion: Balancing Innovation with Human Welfare
The events of 2024 serve as a stark reminder of the need for thoughtful AI regulation. The tech sector’s continued drive toward AI-driven efficiency must be matched by a commitment to preserving human rights, economic stability, and the dignity of work. As a society, we must ensure that technological advancements benefit all, not just a privileged few.
The Biden-Harris administration still has time to lead the charge. Their action—or inaction—will define not only their legacy but the future of millions of Americans. If they fail to act, their inaction will undoubtedly become a cautionary tale in textbooks, a pivotal moment when an opportunity to safeguard the workforce and society was missed. It’s a call for leadership that we cannot afford to ignore. Let us act today to build a future where technological progress and human welfare go hand in hand.
