Since last March, over 160 New York companies have announced mass layoffs. None—in a group that includes AmazonGoldman Sachs is one of the employers who has adopted this standard. AI tools—attributed their workforce cuts These filings are a good example of how to “technological innovation or automation.”
This option was introduced 11 months ago as a mandatory question in the paperwork businesses with more than 50 employees are required to file to inform the state of significant job losses. New York Department of Labor confirmed to WIRED, that no employer has cited technology as the cause of their staff reductions as of January 31.
In the last few years, companies have been celebrating offloading repetitive jobs such as customer service, sales” accounting AI systems. However, they cannot say that human workers are being replaced by robots and AI agents. can risk reputational harm. The difficulty for economists in tying layoffs with technological advancements is that companies can take decades to fully reorganize Consider new methods of working.
Enter New York governor Kathy Hochul. You can better understand the reality by gaining a greater understanding of it. she ordered The Department of Labor will begin to ask whether AI was the cause of layoffs. New York was the first state to offer AI. according to legal experts.
Businesses in New York can choose from a total of 17 reasons, including “bankruptcy,” “merger,” “relocation,” You can also find out more about the following: “other,” WARN (Worker Adjustment Retraining Notification) filings. If a company chooses the Tech and Automation option, an additional question will ask them what technology is taking over the work. This could be AI, robots or “software modernization.”
More than 750 notices covering 162 employers, affecting almost 28,300 workers were sent out without AI. These results indicate that some companies could be at risk. dodging the AI question. This could indicate that layoffs are not the only thing to be afraid of.
Some filers are caterers or retailers, whose employees have not yet been widely linked with capable AI substitutes. Goldman Sachs on the other hand led with 4,100 affected workers, as per New York records. Amazon was in the top 10, with 660 workers affected. Morgan Stanley, a company that also adopted AI, lost 260 jobs.
Goldman Sachs is a very prestigious company. linked Amazon’s AI-powered productivity improvements could be a significant improvement over the company’s layoffs in 2018. Amazon warned Before its most recent waves of layoffs, affecting about 30,000 employees in total, the company warned that AI benefits would result in job losses. A source who declined to be named told Bloomberg Morgan Stanley laid off only a tiny portion of their employees because they were using AI. Since the companies are global, it is possible that AI was used to replace only New York-based employees.
Last year, AI was credited by nearly 55,000 US-based companies with job reductions. according to an analysis of public statements by the job search firm Challenger, Gray & Christmas.
Even though these trends are not reflected in New York’s unique data, they still exist. the challenge With answering the question on everyone’s mind: “Is AI going to take my job?”
Amazon spokesperson Kelly Nantel states “AI is not the reason behind the vast majority” The goal of the cuts is to achieve a reduction in costs. “reducing layers, increasing ownership, and helping reduce bureaucracy.”
Goldman Sachs has declined to make a comment. Morgan Stanley declined to comment.
Precision Checks
WARN is intended to alert state agencies to the possibility of job cuts in advance, so they can increase their services and help those seeking new employment quickly. For non-compliance, companies face daily fines up to $500.
Kristin devoe, spokesperson for the Governor, said the Department of Labor followed up with each employer to make sure the filings were accurate. Amazon is an example of a company that was listed. “economic” Devoe believes that layoffs were justified by this. Devoe explained that the employees who were hired to cope with the online surges during the pandemic are no longer required.
