<\/p>\n
Losing a job is never easy. And finding the next one is even more difficult. Why? Because it takes longer. In fact, you may even find one that pays less.<\/p>\n
That\u2019s the stark reality now facing many workers, especially in tech. A new warning from Goldman Sachs suggests that the rise of artificial intelligence (AI) is reshaping the job market faster than many expected.<\/p>\n
The impact is already showing up. <\/p>\n
From mass layoffs to shifting skill demands, workers are being forced to adapt often at a cost. And the message Wall Street is sending is this: the transition back into employment may not only take longer but also come with lower pay.<\/p>\n
“Workers displaced from technology-disrupted occupations face more difficult short-run transitions back into employment,” Goldman Sachs strategist Pierfrancesco Mei wrote in a new note, according to Yahoo Finance.<\/p>\n
And this isn\u2019t just theory. Layoffs are already sweeping across major tech companies. That, of course, shows a deeper shift in how businesses operate and where they invest. The big concern now is whether workers can keep up with the pace of change. In short, the question is whether the gap between skills and opportunity will continue to widen.<\/p>\n
Goldman Sachs warns AI job losses could mean lower pay<\/p>\n
Goldman Sachs strategist Pierfrancesco Mei didn\u2019t sugarcoat the outlook. In fact, the data shows a clear pattern.<\/p>\n
Workers displaced by technology, he said, are taking longer to find new jobs, about a month more on average. And often end up earning less when they do.\u00a0<\/p>\n
“They take approximately one month longer to find a new job and suffer real earnings losses of more than 3% upon reemployment, compared with negligible losses for workers displaced from more stable occupations.”<\/p>\n
Related: Boeing lands another huge military deal<\/p>\n
Why is this happening?\u00a0 The answer lies in what\u00a0 Mei calls \u201coccupational downgrading\u201d. This is where displaced workers move into roles that require fewer analytical or interpersonal skills, as AI replaces certain roles.<\/p>\n
The same technology that eliminated their jobs is also reducing the value of the expertise they once relied on. So instead of transitioning sideways into similar roles, many are stepping down both in responsibility and pay. It\u2019s a subtle shift. But one that could reshape long-term career paths.<\/p>\n
Shutterstock<\/p>\n
Tech layoffs continue to surge as companies shift toward AI<\/p>\n
The warning comes as layoffs ripple across the tech sector, with several major companies making deep cuts tied to AI adoption.<\/p>\n
Several major companies have already made aggressive cuts in 2026. Block laid off more than 4,000 employees. In fact, that\u2019s a 50% of its total workforce.\u00a0<\/p>\n
\u201cToday we shared a difficult decision with our team,\u201d Block\u2019s co-founder and CEO, Jack Dorsey, wrote in a letter to shareholders. \u201cWe\u2019re reducing Block by nearly half, from over 10,000 people to just under 6,000, which means that over 4,000 people are being asked to leave or entering into consultation.\u201d<\/p>\n
More Layoffs:<\/p>\n
Major grocery store supplier delivers harsh message to workers4 signs your company is quietly planning layoffsLuxury retail giant cuts more than 1,200 jobs after bankruptcy filing<\/p>\n
According to the BBC, Amazon (AMZN) will also cut about 14,000 jobs, while Oracle Corporation (ORCL) reportedly eliminated up to 30,000 roles across multiple regions, as reported by CNBC. Meta Platforms Inc. (META) is also planning to cut around 20% workforce as it ramps up spending on AI infrastructure.<\/p>\n
What\u2019s driving these decisions is not random. It isn\u2019t just cost-cutting. Companies are actively reallocating resources toward AI. Betting that automation will improve efficiency and long-term profitability. But that shift is coming at the expense of human roles, particularly in areas like coding and routine technical work. And more cuts could still be ahead.<\/p>\n
U.S.-based employers announced 60,620 job cuts in March<\/p>\n
The scale of disruption is already significant. According to Challenger, Gray & Christmas, U.S. employers reported 60,620 job cuts in March, a 25% increase from the previous month.<\/p>\n
Key takeaways at a glance:<\/p>\n
March layoffs: 60,620 announced, up 25% from February\u2019s 48,307.Year-over-year: March cuts down 78% from 275,240 last year.Q1 total: 217,362 job cuts, down 56% compared with the same period in 2025.<\/p>\n
So what\u2019s changing? It\u2019s not just the number of layoffs. It\u2019s where they\u2019re happening. A growing share of these cuts is directly tied to AI. Companies are no longer just experimenting with the technology.\u00a0 <\/p>\n
They\u2019re integrating it into core operations, and the trend may not be slowing down.\u00a0That means fewer roles in areas where AI can automate tasks, especially in software development and data processing. <\/p>\n
Related: Waymo ride quietly arrives in a new key U.S. city<\/p>\n
Andy Challenger, the firm\u2019s chief revenue officer, says companies are actively shifting budgets toward AI. So while AI is creating opportunities in some areas, it\u2019s clearly reducing demand in others.<\/p>\n
\u201cCompanies are shifting budgets toward AI investments at the expense of jobs. The actual replacement of roles can be seen in Technology companies, where AI can replace coding functions. Other industries are testing the limits of this new technology, and while it can\u2019t replace jobs completely, it is costing jobs,\u201d said Challenger.<\/p>\n
Wall Street leaders say disruption is inevitable<\/p>\n
The message from corporate leaders is consistent. JPMorgan Chase CEO Jamie Dimon acknowledged that AI will eliminate some jobs, even as it creates new ones. The challenge is that the new roles may require different skills, leaving some workers in transition. At the same time, labor shortages persist in many sectors, including both white-collar and blue-collar jobs.<\/p>\n
\u2033AI will eliminate jobs. That doesn\u2019t mean that people won\u2019t have other jobs,\u201d Dimon told Fox News.<\/p>\n
So, jobs are being created, but not always in the same places or for the same people. For many workers, the path forward may involve longer job searches, lower pay, and the need to adapt quickly to new demands. The workforce will need to adjust fast because in this new environment, standing still may no longer be an option.<\/p>\n
Related: United Airlines makes big change to its bags policy<\/p>\n
#Goldman #Sachs #issues #brutal #jobs #warning #American #employees<\/p>\n","protected":false},"excerpt":{"rendered":"
Losing a job is never easy. And finding the next one is even more difficult….<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[259],"tags":[286,4001,1190,1305,2223,310,1306,856],"_links":{"self":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/3540"}],"collection":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3540"}],"version-history":[{"count":0,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/3540\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}