Susana Schwartz
Will AI-driven job cuts sow AI infrastructure fears?
Chemical maker Dow announced yesterday it would cut approximately 4,500 jobs in a shift toward AI and automation — part of its “Transform to Outperform” program, which aims to boost earnings by “at least $2 billion.” This comes a day after Amazon announced it would be cutting 16,000 jobs, bringing the total to 30,000 since October. More than 1,200 Amazon employees circulated an open letter criticizing the company’s AI strategy and calling for more worker involvement and input into how AI is deployed, including how or whether AI‑related layoffs or headcount freezes are implemented. Just before that announcement, the United Parcel Service (UPS) announced a pending decoupling from Amazon, as well as a plan to cut 30,000 operational jobs. Last year, UPS eliminated 48,000 jobs. Why does this matter in the realm of AI infrastructure? Because growing distrust and fear among workers has an impact on perception and resistance to data center and AI infrastructure buildouts in communities. It seems imperative that the industry, and federal, state and local governments “read the room” and start promulgating the ways in which AI is going to indeed bring jobs, improve life, and grow employability long term. For example, at the World Economic Forum, it was said AI may displace 92 million jobs by 2030, but 170 million new roles might be created, resulting in a net gain of 78 million jobs. If more isn’t done soon to prove the speed and scale of current AI infrastructure is justified, this might be the topic that drives unlikely coalitions and unifies otherwise oppositional forces, across party lines, demographics, and education levels.
Susana Schwartz
Technology Editor
RCRTech
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