Latest news with #AndyChallenger
Time of India
17-07-2025
- Business
- Time of India
Is AI quietly stealing jobs disguised as 'restructuring'? The hidden truth behind routine layoffs
Artificial intelligence has been making headlines for its rapid evolution and impressive capabilities. From automating customer service chats to coding complex software, AI tools have seeped into virtually every corner of modern business. But behind the glossy PR campaigns and innovation summits lies a less glamorous reality—one that experts warn is already reshaping the job market in ways we're not even measuring accurately. According to a recent Inc. report, many companies may be replacing workers with AI—but are simply choosing not to say so. Instead, euphemisms like 'technological updates' or 'market conditions' are being used to explain workforce reductions . Executive outplacement firm Challenger, Gray & Christmas found that only 75 job cuts in the U.S. during the first half of 2025 were explicitly linked to AI. That number, when contrasted with over 744,000 total layoffs, seems not only low but potentially misleading. Explore courses from Top Institutes in Select a Course Category Public Policy MBA Healthcare Leadership Finance Operations Management Digital Marketing Data Science Degree others Product Management Data Science Technology Others CXO MCA Management Artificial Intelligence Cybersecurity Project Management Data Analytics Design Thinking PGDM healthcare Skills you'll gain: Duration: 12 Months IIM Calcutta Executive Programme in Public Policy and Management Starts on undefined Get Details Is It AI or Just Economics? The language companies use to explain their decisions may be shaping public perception far more than we realize. Andy Challenger, senior VP at the firm, told HRDive that AI-linked layoffs are likely being categorized under broader, more vague terms to avoid negative attention. 'Some of the AI job cuts that are likely happening are falling into that category,' he said, pointing to a growing reluctance among businesses to openly acknowledge AI's role in workforce downsizing. This is particularly concerning when considering that companies like Meta, Google, and Microsoft have openly praised AI's efficiency. Microsoft and Google CEOs recently admitted that AI now writes up to 30% of their operational code. Meta, meanwhile, has restructured entire departments, citing automation and AI as reasons for role reductions—especially among mid-level coders. Yet, AI is rarely mentioned as the primary reason for layoffs in corporate filings. The likely reason? According to Challenger, it's all about optics. 'Some firms don't want press on it,' he said. You Might Also Like: Nikhil Kamath's 'lifelong learning' advice is only step one: Stanford expert shares the key skills needed to survive the AI takeover Voices of Caution Amid the Optimism While some industry leaders see AI as an engine of progress, others urge caution. Dr. Fei-Fei Li, co-director of the Stanford Human-Centered AI Institute and one of the foremost global experts in the field, has publicly warned against the language of 'replacement.' Speaking on a Berggruen Institute podcast, she emphasized, 'It truly bothers me when people use the word 'replace' when it's connected to AI.' To Li, reducing humans to a list of mechanical tasks risks stripping away the very dignity that defines our value. 'We are so much more than those narrow tasks,' she said. Her advocacy for 'human-augmenting AI' reminds us that machines should assist us, not substitute us. Why It Matters More Than Ever AI's potential isn't just technical—it's moral, social, and deeply human. While billionaires like Mark Cuban argue that tech revolutions eventually create more jobs than they destroy, the reality is murkier. For every visionary predicting a new era of opportunity, there are thousands of workers quietly displaced, unsure whether to blame the economy, their employer, or an algorithm. The challenge isn't just to measure AI's impact, but to name it honestly. Until companies begin to call these changes what they truly are, the world risks sleepwalking into a future where progress comes at the cost of transparency—and perhaps, humanity itself. You Might Also Like: After firing 700 employees for AI, Swedish company admits their mistake and plans to rehire humans. What went wrong?
The Star
16-07-2025
- Business
- The Star
AI could steal many more jobs than previously thought. Here's why
If you ask ChatGPT if the technology behind it is stealing people's jobs, the response is telling: 'AI is changing the job market by automating certain tasks, which can reduce the need for some roles, especially repetitive or data-driven jobs,' it admits. Then it adds a positive spin that aligns with an idea AI hawks are promoting, noting that AI 'also creates new opportunities in tech, Al development, and industries adapting to new technologies.' While few reports say AI is actually creating new jobs, other, more critical reports suggest it's actually taking plenty of people's work away. New research from a leading human resources consulting firm suggests that the number of these lost jobs may be underreported. That means AI may already be replacing human workers at a much higher rate than anyone realises. Executive outplacement firm Challenger, Gray & Christmas, based in Chicago, reports that research into AI job replacement found that only 75 actual job cuts in the first half of the year in the US were explicitly linked to AI, according to industry news site HRDive. The firm trawled through public data, including statements made by other companies, as well as government filings. It concluded that while tech-linked factors like automation did play a role in some 20,000 job cuts, a startlingly low total were directly attributed to AI replacing humans. 'We do see companies using the term 'technological update' more often than we have over the past decade,' Andy Challenger, a senior vice president at the firm, explained in an interview. He voiced his own suspicion that 'some of the AI job cuts that are likely happening are falling into that category,' without being directly blamed on AI. This might seem confusing, since the fact that many companies are adopting AI is public knowledge. Big names like Meta openly state that they are reducing the number of people in certain roles because the efficiencies or technical abilities of AI tools mean they can take on the duties of some employees, such as mid-level coders at Meta. Challenger suggested one reason for the low number of job reductions explicitly linked to AI adoption by businesses: It might be because certain firms simply 'don't want press on it,' he said. This notion might track for companies that are sensitive to their public image or that traditionally control the media narrative around their business carefully, like Apple. Challenger's report says that of the over 744,000 jobs cut in the US in the first six months of the year, cuts directly related to DOGE-led efforts took the biggest share, at nearly 287,000 people. 'Market and economic conditions' were the second-most-cited reason for workforce downsizing, responsible for over 154,000 job losses, the data show. Compared to these figures, the mere 75 roles directly lost to AI sounds all but unbelievable, lending support to Challenger's assertion that companies are hiding AI-related job cuts under other labels. Part of the issue here is that while some companies are making bold assertions about the quantity of work that AI is performing – Microsoft and Google's CEOs recently said AI is writing upwards of 30 percent of the code these companies rely on. Other tech leaders, such as Amazon's Andy Jassy, are warning, sometimes clumsily, that AI will lead to staffing cuts. The fact is, even AI experts don't know how much AI will impact existing jobs across the world economy. A lively spat between billionaire entrepreneur Mark Cuban and Dario Amodei, CEO of leading AI company Anthropic, over the risk AI presents to white-collar jobs provides a great example. In an interview, Amodei warned AI could wipe out half of all entry-level white-collar jobs inside the next five years. Cuban, no stranger to successful high-tech businesses, fired back on social media that 'Someone needs to remind the CEO that at one point there were more than 2m secretaries. There were also separate employees to do in-office dictation.' Cuban was referencing the workforce revolution that ubiquitous computer and smartphone tech has brought to the office. He concluded that 'New companies with new jobs will come from AI and increase TOTAL employment.' This confusion could also be why some companies may be hiding AI-related downsizing in other categories in their public statements: No company leader wants to look like they've made a big business mistake by jumping on the latest, buzziest bandwagon if it later proves to have been a bad idea. – Inc./Tribune News Service
Boston Globe
30-06-2025
- Business
- Boston Globe
The summer job, a rite of passage for teens, may be fading away
Teenagers across the country are entering one of the toughest summer job markets in recent years, as traditional jobs at restaurants, amusement parks, pools and stores either pause new hiring or choose adults for those roles. In May, the unemployment rate for teenagers rose to 13.4 percent, from 13 percent in April and 12.4 percent a year ago, according to the Bureau of Labor Statistics. Advertisement A tighter labor market suggests that teen unemployment could reach its highest level in over a decade, said Andy Challenger, senior vice president of the outplacement firm Challenger, Gray & Christmas. In May 2015, the unemployment rate for teenagers was 17.8 percent, but it began to decline before the pandemic. This year, the firm estimates there will be about 1 million new summer jobs for 16- to 19-year-olds. It could be the lowest number since 2010, Challenger said, adding that companies that traditionally hire summer workers may hold off this year. Advertisement Uncertainty about the economy is a major reason, said Alicia Sasser Modestino, an economist at Northeastern University in Boston. Some businesses are freezing roles or cutting seasonal positions over concerns about lower consumer confidence and fears that consumer spending will weaken under President Donald Trump's tariff policies. That hesitation hits teens hardest, Modestino said. 'Now when we're starting to see the labor market cool off a bit in general, we're seeing it hit teenagers harder, and teenagers first,' she said. 'That's because they're really the canary in the coal mine. They are the last to be hired, the first to be fired.' Tourism, another teen job driver, is down. Spending from international visitors to the United States is expected to drop by $8.3 billion this year, according to a recent Oxford Economics report. Mudit Sachdev, a franchise owner of Camp Bow Wow, a dog day care and boarding center, said he expected fewer Americans to travel this summer, which would lead to a drop in demand for his services. So he hired 12 teens this summer across his three New Jersey locations, five fewer than last year. Employers are also not hiring solely for summer jobs. That means they can be more selective, choosing experienced adults or those available beyond the summer, said Allison Shrivastava, an economist at Indeed Hiring Lab, a research group that's part of the job site Indeed. Yet teenagers are undeterred. On Indeed, early-May job searches for summer work were at their highest in recent years, the company said. Teens are also looking to Boys & Girls Clubs of America, which teaches workforce readiness skills. The organization reported a 14 percent jump last year in membership among teens, with many citing job readiness as a top reason for joining. Advertisement 'They want to find a first job, they want adult preparation, and they want the skill development,' said Jennifer Bateman, senior vice president of youth development at the organization. Bateman also said the rise of automation -- like self-checkout kiosks -- has chipped away at the kinds of entry-level jobs teenagers used to rely on. 'They definitely note that there's fewer opportunities available,' she added. Morgan Herb, 16, from Atlanta, started applying for retail and service sector jobs through Indeed in January but didn't hear back from anyone. So she started giving her resume to store managers in person. That move landed her a part-time job in February, as a cashier at a food hall. But now she's looking for a new job because she's not getting as many shifts as she would like. 'It's kind of frustrating, honestly,' Herb said. 'Part of me is just kind of like accepting it, because really like, what am I going to do besides try to find a new job?' Herb said she wanted to make money to participate in a weekly 'Tater Tuesday' hangout with friends, where they make something fun and edible out of potatoes. She occasionally walks dogs and takes babysitting gigs to earn extra cash, she said. Shalini Khiani, 17, in San Jose, California, also struggled to find the kind of work she was looking for. Last summer, she had a job at an amusement park in nearby Santa Clara, but she was unable to find a similar opportunity this year. Advertisement Eventually, she landed a job as an intern at a local summer camp, but it pays almost $2 less than her job last summer. Khiani doesn't think she would have gotten the job without her experience at the amusement park, since many of her teen co-workers at the camp previously had jobs. 'No one really likes hiring teenagers,' Khiani said. 'This is the point where we are right now.' (STORY CAN END HERE. OPTIONAL MATERIAL FOLLOWS.) Labranche, the high school junior, thought her experience working at a general store two summers ago would make her job search easier. But she struck out last summer and is facing the same challenges now. She will be applying to college next year, with plans to eventually become a lawyer, and said she hoped a summer job would offer skills she could list on her college applications. 'It's just so hard. I don't know why they won't hire me,' she said. Her mother, Eugesse Labranche, said she didn't expect her daughter to have such a tough time finding a job. Summer jobs, she said, give teenagers a start in the workforce and help them build experience. 'I would like her to find something to make her happy,' she said about her daughter. 'I'm praying she finds something.' This article originally appeared in .
Mint
14-05-2025
- Business
- Mint
What if your salary is too high for today's job market?
All of us like to think we are worth every penny of our paychecks—and then some. Many Americans who scored big raises a few years ago are coming to the harsh realization that they are overpaid in today's cooler job market. It's not that they are failing to live up to the deals they signed. It's that wages have fallen in tech and other industries while the expansion of pay transparency laws makes it hard to ignore this truth. Go ahead and snicker at these lucky stiffs, but consider that you might be one of them. Two-thirds of U.S. workers say they are compensated at or above the current value of their skills, according to a new workforce report by consulting firm Korn Ferry. 'We've certainly seen a shift in the last year with our clients," says Ron Seifert, a senior client partner at Korn Ferry. 'They're not as aggressive in recruiting. They monitor offers a lot more carefully." I spoke recently with more than two dozen people who job hopped during the pandemic-era talent war. For a lot of them, a sense of dread taints the satisfaction of having gotten raises while the gettin' was good. They fear they wouldn't be able to match their pay packages if they were looking for work today. The thought of a pay cut is especially unnerving for those who bought homes and built comfortable lifestyles around their high earnings. Some worry their salaries could put bull's-eyes on their backs if their employers decide to cut costs. A virtual-reality specialist who tripled his total compensation upon joining Meta a few years ago says he suspects his salary is one reason why he was laid off. A sales manager who had a generous incentive plan says her boss implied she had become overpaid before laying her off. 'I've been on the inside with companies as they make layoff decisions a thousand times," says Andy Challenger, senior vice president of Challenger, Gray & Christmas, which advises businesses on job cuts. 'Inflated compensation packages relative to the market can, of course, be part of those decisions." Jacob Timm, a software engineer in Minnesota, used to think a better offer was always around the corner. Recruiters contacted him on LinkedIn almost daily in 2021 and 2022. In one six-month burst, he received an internal promotion then was poached by another company, moves that collectively boosted his earnings by 70%. Now headhunters reach out to him every month or two. He's not looking for a new job but often browses open roles to gauge how his pay stacks up against advertised salaries. It's on the high side, especially for fully remote positions like his. 'If I got laid off, I think it'd be hard to match my current salary," says Timm, 30. 'I think I'd have to look a little bit longer and be willing to take a pay cut if I went six months without a job." Seeing how the labor market has shifted, he and his wife padded their emergency fund. They now keep nine months of expenses in reserve, instead of three to six months. Several others whose pay spiked told me they are confident they could equal their salaries on the open market. They don't worry about being replaced by cheaper talent, figuring the cost of recruiting and training someone else would negate their employer's savings. Still, more job switchers are settling for lateral moves or pay cuts now than a few months ago. Just six in 10 people who recently changed jobs received pay increases, according to ZipRecruiter's latest quarterly survey of new hires. That's down from 73% in the fourth quarter of last year and a far cry from early 2022, when nearly half of job switchers pocketed raises of at least 11%. Page Sheldon, an accountant in Colorado, changed jobs twice in a year around that time and increased his salary by 47%. 'Definitely wouldn't be able to replicate that right now, that's for sure," he says. Sheldon, 30, benefited from a surge in demand for CPAs as the economy revved back up and corporate dealmaking boomed. Now, tariffs and general economic uncertainty are cooling merger activity. He says he would expect stagnant pay—and less work-from-home flexibility—if he switched jobs. Joseph Magnuson, who works in private equity in Texas, scored a roughly 60% raise when he jumped to a different firm in 2021. He says he's glad he didn't follow some of his peers who chased even bigger gains. That's only partly because he is married with three children and values work-life balance. 'It's all kind of coming to a head, and the people who were really opportunistic are starting to lose their jobs," says Magnuson, 32. 'Transaction volumes are down, projected returns are falling, and fair-market wages are declining a little bit." People's level of panic depends on how they viewed massive raises in the first place. Some say they knew all along that their offers were inflated by a once-in-a-generation hiring frenzy. Figuring a correction was coming, they've been conservative with their personal finances. Others confess to thinking their paychecks were on a rocket ship bound for ever-greater heights. If that's you, it could be wise to prepare for a time when the projectile falls back to Earth. Write to Callum Borchers at
