Do not tell me that AI is a hype when you can see the impacts already in the market: “The tech industry’s ongoing embrace of artificial intelligence has triggered another wave of sweeping job cuts in 2025, with IBM, Business Insider, and LinkedIn eliminating a combined total of more than 8,500 jobs — a signal that automation is not just reshaping the workplace but rapidly replacing human labor altogether.”

Good People, you must have a career plan, and become a believer that AI will cause severe paralysis in the workplace. Let me share an experience. When I started in banking in Lagos, I was very good at coupling and assembling computers, and doing networking. But the very day I saw non graduates (all respect to Computer Village boys) do all that “geeky” stuff was the day I told myself that this “IT” thing may not be a durable career path. Largely, I felt over time, the ability to compound experience and earn more would diminish.

Quickly, I decided to return back to electrical and electronics engineering since that one cannot be disintermediated easily. Fortunately, it worked really well as I have not seen anyone who can design microprocessors, and wire transistors, without a deep understanding of device physics, calculus, and things no human on the street can hack without going to college! That knowledge system is the moat to protect good wages as the party has a high entry barrier.

But today, for the software engineers, it is not the guy on the street that is coming after the job, but AI, and that makes it more intriguing. My message is clear: plan that the AI you are creating today will make you redundant in months!

Over 8,500 Jobs Wiped Out as AI-Driven Layoffs Deepen at IBM, BI, LinkedIn — Tech Leaders Warn of Looming Labor Crisis

The tech industry’s ongoing embrace of artificial intelligence has triggered another wave of sweeping job cuts in 2025, with IBM, Business Insider, and LinkedIn eliminating a combined total of more than 8,500 jobs — a signal that automation is not just reshaping the workplace but rapidly replacing human labor altogether.

IBM alone has laid off nearly 8,000 employees, targeting mostly human resources positions — one of the first major departments to be hollowed out by AI systems. Business Insider has slashed approximately 8 percent of its 2023 workforce — this time cutting 21 percent, which amounts to more than 300 jobs, while LinkedIn, owned by Microsoft, has let go of 281 workers across California, hitting software engineers, designers, product managers, and remote staff.

The cumulative toll: over 8,500 jobs — just from these three companies.

While corporate leaders tout AI as a tool for efficiency and expansion, tech executives are also sounding the alarm. Dario Amodei, CEO of AI startup Anthropic, warned that artificial intelligence could eliminate half of all entry-level white-collar jobs within the next five years, especially roles in HR, legal, marketing, customer service, and content creation.

“We, as the producers of this technology, have a duty and an obligation to be honest about what is coming,” Amodei told Axios. “I don’t think this is on people’s radar.”

IBM: HR on the Chopping Block

IBM’s layoffs targeting nearly 8,000 staffers are concentrated in human resources, a department once seen as irreplaceably people-driven. CEO Arvind Krishna confirmed in an interview with The Wall Street Journal that the company has used AI to replace the work of “a couple hundred human resources workers,” and suggested many more roles are being quietly phased out.

Krishna bluntly noted that automation isn’t just about improving productivity — it’s about cost-cutting and strategic realignment.

“AI gives you more investment to put into other areas,” he said. Despite the layoffs, Krishna claimed IBM’s overall headcount is up, as the company expands in other AI-forward sectors.

Business Insider: Pivoting to AI and Events

At Business Insider, the axe fell on more than 300 employees, marking the third round of layoffs in three years under German parent company Axel Springer. The company is scaling back on underperforming content categories and shutting down most of its e-commerce operations, citing a dependence on unstable search traffic.

CEO Barbara Peng said the company will focus on segments where readers “subscribe, engage and consistently return,” though she did not specify which areas those are. At the same time, the media outlet is betting on AI, announcing the expansion of “multiple AI-driven products,” including an AI-powered paywall and generative search tools. Peng said AI will also be used to scale business operations.

The Business Insider Union, affiliated with the NewsGuild of New York, slammed the layoffs and AI integration in a scathing statement.

“Let’s be clear: This is far from anything new,” the union said. “This is the third round of layoffs in as many years and it is unacceptable that union members and other talented coworkers are again paying the price for the strategic failures of Business Insider’s leadership.”

Union representatives also called Peng’s mention of AI in her layoff memo “tone deaf.” “No AI tool or technology should or can take the place of human beings,” the statement said.

LinkedIn: Engineers and Product Managers Cut

Microsoft-owned LinkedIn filed a WARN notice in California confirming 281 job cuts, affecting workers in Mountain View, San Francisco, Sunnyvale, Carpinteria, and remote locations across the state. The majority of layoffs hit software engineers, including senior and staff-level coders, and others working in machine learning, DevOps, and systems infrastructure.

The cuts are part of Microsoft’s broader plan to trim 6,000 jobs globally. In April, Microsoft CEO Satya Nadella revealed that AI now writes up to 30 percent of the company’s code, raising questions about the long-term demand for entry-level and mid-level software engineers.

Microsoft has not given a public explanation for the layoffs at LinkedIn, and unlike in 2023 — when CEO Ryan Roslansky sent out an internal memo after a 716-person layoff — there has been no detailed communication to staff this time.

Displaced employees have taken to LinkedIn itself to share their frustration. One posted a picture from a hospital bed and wrote, “If I can beat cancer, I can beat this.” Another described how he was preparing for a client meeting before abruptly being let go. “Damn. They laid ya boy off,” wrote a third, summing up the shock many are now experiencing.

A Crossroads for the Tech Workforce

Across the tech industry, AI is reshaping the very nature of employment. While companies continue to pledge investment in new roles, the trajectory is sending a clear message that entry-level and support positions are vanishing, replaced by machines that can work faster, around the clock, and without pay.

Economists and labor advocates are warning that the trend may soon ripple beyond tech and into finance, legal services, and healthcare — sectors similarly reliant on white-collar administrative and analytical work. As AI grows more capable, even high-skilled roles may face redundancy.

Anthropic’s Dario Amodei said that while AI has massive potential to boost productivity, the workforce is not being prepared fast enough for the disruption.

With over 8,500 jobs already gone in the first half of 2025 from just three firms, that warning is no longer abstract. It’s becoming a reality.

The United States economy contracted at a 0.2 percent annual pace in the first quarter of 2025, marking the first drop in three years, as President Donald Trump’s aggressive trade policy — including sweeping tariffs — disrupted domestic demand, stoked business uncertainty, and widened the trade deficit.

The Commerce Department revised its initial estimate of a 0.3 percent decline to 0.2 percent, but the downgrade still captures the brunt of the tariff shock that rattled markets and pushed businesses into panic buying. A surge in imports, as U.S. companies raced to bring in foreign goods before the full weight of Trump’s duties took effect, slashed over five percentage points off gross domestic product (GDP) growth.

Imports jumped at a 42.6 percent annual rate, the fastest since the third quarter of 2020, outpacing domestic production and inflating the trade deficit, which by GDP calculation standards is subtracted from economic output. Economists say this spike was a direct response to the administration’s escalating tariffs on a wide range of goods including steel, aluminum, autos, and consumer products from China, Canada, Mexico, and the European Union.

“Businesses front-loaded imports ahead of the tariff deadlines, and that distorted the GDP reading,” said Scott Wendell, a senior economist with Atlanta Capital Economics. “This isn’t sustainable. You’re unlikely to see a repeat in Q2, but the damage has already been done.”

Consumer Spending, Government Outlays Also Slowed

The report also showed a marked slowdown in consumer spending, which grew at just 1.2 percent — a sharp drop from 4 percent in the previous quarter. Household sentiment has weakened amid price hikes linked to the tariffs, which increased costs of everyday goods ranging from cars to appliances and groceries.

Federal government spending also declined by 4.6 percent, the steepest drop in three years, as agencies tightened budgets in response to fiscal pressures and political gridlock in Washington.

However, there were pockets of strength. Business investment surged 24.4 percent, with companies ramping up spending on equipment and construction. A buildup in inventories, as firms stockpiled supplies ahead of tariffs — added 2.6 percentage points to GDP, partially cushioning the overall decline.

Another measure used to gauge the economy’s underlying health, which strips out volatile components like inventories, government spending, and trade, rose at a solid 2.5 percent annual rate, though it was still down from 2.9 percent in the previous quarter.

Court Blocks Key Tariffs, Offering Hope for Recovery
In a major twist, a federal court on Wednesday blocked Trump’s sweeping 10 percent tariffs, including targeted levies on imports from Canada, Mexico, and China, ruling that the president had exceeded his legal authority.

“Today a court ruled exactly what I said from the beginning: the power to tax lies with Congress, not one man, and tariffs must originate in the House.  So if House Republicans want to impose tariffs, let them vote to enact them,” Peter Schiff, Chief Economist & Global Strategist at Europe Pacific, said.

The decision immediately halted further implementation of the contested duties and is expected to ease some pressure on both consumers and businesses going into the second quarter.

The ruling comes on the heels of mounting criticism from industry leaders and economists who described the tariffs as illegal and warned that although Trump intended to use them as a measure to protect American manufacturing, they would backfire.

Outlook for Q2 and Beyond

Economists now expect some reprieve in the second quarter. With the panic-induced import surge unlikely to repeat, and with tariffs on pause, growth could rebound modestly. Forecasts for Q2 range between 1.5 to 2 percent annual growth, although risks remain.

President Trump has insisted that the trade policies are part of a long-term strategy to rebuild domestic industry and reduce dependence on foreign supply chains. But analysts note that the near-term cost to the broader economy — particularly consumers and small businesses — is too high.

Thursday’s data was the second of three GDP estimates for the first quarter. The final number will be released on June 26. Until then, markets and policymakers will be watching for signs of stabilization or further fallout from one of the most turbulent trade experiments in recent U.S. history.