Goldman Sachs has cautioned that artificial intelligence is starting to reshape the jobs landscape, with tech roles among those feeling the pressure.
The bank pointed to AI’s growing presence in workplaces and suggested it is already influencing hiring and layoffs, particularly across the technology sector.
The message from its analysis is that the near-term outlook for parts of the industry is challenging.
In March, US employers announced 60,620 job cuts, a jump of 25 percent compared with February.
Job losses have been driven by a range of forces, but AI was linked to roughly a quarter of the March total, underscoring how quickly the technology is becoming a factor.
Goldman Sachs strategist Pierfrancesco Mei also argued that the disruption may extend beyond an immediate reduction in openings, affecting workers’ longer-term ability to re-enter the market.
According to the Wall Street Journal, Goldman Sachs warned that workers laid off for AI-related reasons could face a tougher path back to employment, as the skills they previously relied on may not carry the same value for employers.
That backdrop comes as major tech companies continue to announce significant headcount reductions.
Meta, which owns Facebook, WhatsApp, and Instagram, has confirmed another round of redundancies.
Amazon has also said it will eliminate thousands of corporate roles.
On March 31, Oracle said it would cut 10,000 jobs in a single morning, part of a wider plan to reduce 30,000 roles globally.
Block, the payments firm founded by former Twitter boss Jack Dorsey, has reduced its workforce by 40 percent.
Atlassian has likewise said it plans to lean more heavily into AI and has cut around 10 percent of its staff.
Tracking site layoffs.fyi estimates roughly 165,000 tech layoffs over the past year.
Mei added that displaced workers often spend longer searching for new roles and can end up accepting lower pay when they do find work.
He wrote: “They take approximately one month longer to find a new job and suffer real earnings losses of more than three percent upon re-employment, compared with negligible losses for workers displaced from more stable occupations.”
As Mei described it, that’s partly because people may be pushed into less senior positions if their previous skills no longer command the same demand.