"I think we are going to see AI get even better. It is already extremely good. We are going to see it having the capabilities to replace many, many jobs." - Geoffrey Hinton, computer scientist and Turing Award winner.
Reshaping the global workforce
As companies rapidly integrate artificial intelligence into core business processes, labour demand is being restructured across sectors. This shift has gained urgency after warnings from pioneers like Geoffrey Hinton that massive job cuts could emerge as early as 2026. Technology companies are already adjusting workforce strategies, offering early signals of a broader labour market realignment.
Shifting trends in job cuts
Global tech layoffs declined in total numbers in 2025. However, the average number of employees laid off per company rose sharply from about 221 in 2023 to nearly 517 in 2025. These figures point to deeper, more concentrated restructuring as firms pursue AI led efficiency gains. Layoffs are no longer confined to software and IT services.
Broadening impact across sectors
Hardware now accounts for over 31 per cent of employees laid off in 2025. This is followed by retail and consumer oriented sectors, indicating that AI adoption is reshaping production, logistics, and customer facing operations alongside digital functions. As AI replaces routine roles, hiring is increasingly shifting toward AI specific skills.
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India leading the hiring surge
AI talent recruitments grew faster across countries in 2024, with India recording the highest share of AI hiring globally. Industries most exposed to AI have recorded wage growth of nearly 17 per cent since 2018. AI skill penetration in India is the highest globally, placing the nation among a group of countries with a rapidly expanding AI skill base.
Global competition for talent
Net AI talent flows from India in 2024 show continued outflows, pointing to strong international demand for these skills. This intensifies competition among countries to attract and retain specialised talent. While India gains in skill penetration, it faces the challenge of losing more AI talent than it gains in the global migration market.
Summary
The rapid integration of AI is transforming the global job market, driving concentrated layoffs in tech while increasing demand for AI specific skills. India leads the world in AI hiring and skill penetration, yet faces significant talent outflows as international competition for specialised experts intensifies across all industrial sectors.
Food for thought
If AI driven efficiency continues to double the average layoff size per company, can national upskilling initiatives ever move fast enough to prevent a permanent surplus of displaced workers?
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AI concept to learn: AI skill penetration
AI skill penetration is a metric used to measure how deeply artificial intelligence expertise is integrated within a specific country or industry compared to the global average. It reflects the concentration of professionals who possess specialized technical skills like machine learning, natural language processing, or data science. A high penetration rate suggests that a workforce is rapidly evolving to prioritize AI capabilities over traditional job functions.
[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. Various sources are used. All copyrights acknowledged. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]
