Tens of thousands of white collar jobs are disappearing as AI starts to bite

Layoffs at companies ranging from Amazon to Target are sending young and experienced workers alike into an unwelcoming market

- Lindsay Ellis, Owen Tucker-Smith & Allison Pohle

Jobs that are higher-paying and require a bachelor's degree are more exposed to AI than other positions, economists found.

(AF)

The nation’s largest employers have a new message for office workers: help not wanted.

Amazon.com said this week that it would cut 14,000 corporate jobs, with plans to eliminate as much as 10% of its white-collar workforce eventually. United Parcel Service said Tuesday that it had reduced its management workforce by about 14,000 positions over the past 22 months, days after the retailer Target said it would cut 1,800 corporate roles.

Earlier in October, white-collar workers from companies including Rivian Automotive, Molson Coors, Booz Allen Hamilton and General Motors received pink slips—or learned that they would come soon. Added up, tens of thousands of newly laid off white-collar workers in America are entering a stagnant job market with seemingly no place for them.

At 5:30 a.m. on Tuesday, Kelly Williamson woke up to an alarming text from her employer, Amazon’s Whole Foods Market, urging her to check her email.

“Review asap and stay home from work today,” the message said. Williamson’s role on the asset-protection team was being eliminated. The badge and laptop for the 55-year-old from Austin, Texas, were deactivated. She was given 90 days to look for another job at the company. She said her personal belongings are being mailed to her.

A leaner new normal for employment in the U.S. is emerging. Large employers are retrenching, making deep cuts to white-collar positions and leaving fewer opportunities for experienced and new workers who had counted on well-paying office work to support families and fund retirements. Nearly two million people in the U.S. have been without a job for 27 weeks or more, according to recent federal data.