AI-Driven Automation Fuels IT Job Cuts as Companies Embrace Cost Avoidance Strategies

Benzinga37 sec

U.S. IT sector unemployment rose by 1.8% from December to January, hitting 5.7%, outpacing the overall U.S. jobless rate of 4%. AI-driven job losses in tech stem from increased spending on AI infrastructure without corresponding IT job creation. Companies increasingly use AI to automate tasks instead of hiring new workers, a strategy tech leaders call cost avoidance.

Released

2025