Wharton Professor Warns of AI’s Growing Impact on Entry-Level Jobs, Calls for Clearer Organizational Vision
Aug 03, 2025
Hands typing on a computer keyboard | Source: Pexels
Laid Off Because of AI: Experts Explain How to Navigate Your Next Career Move
Artificial intelligence is reshaping workplaces across the globe, and in 2025, thousands of professionals have faced job losses as companies invest heavily in automation. High-profile layoffs have highlighted the impact of AI on employment, leaving many workers uncertain about their next steps and how to adapt to a rapidly changing job market.
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In October, Amazon laid off 14,000 corporate employees, citing investments in AI and other major initiatives. Salesforce CEO Marc Benioff also revealed that the company had cut 4,000 customer support positions, explaining that AI can perform roughly 50% of the company’s work. Other companies across the U.S. and Europe, from Accenture and Lufthansa to Klarna, have announced similar reductions as they streamline operations and integrate AI-driven solutions. According to Challenger, Gray & Christmas, the U.S. experienced its highest October layoffs since 2003, totaling 153,074 job cuts — a 183% increase from September and 175% higher than the same month last year. Overall, 2025 has seen the most severe year for announced layoffs since 2009.
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Experts advise affected professionals to carefully evaluate the reasons behind their layoffs. Fabian Stephany, assistant professor of AI and work at the Oxford Internet Institute, emphasized the importance of remaining “skeptical and investigate.” He explained, “Is this really due to AI? Even though the company says it’s about automation and AI… it might be about mishiring in the past, it might be about [the] economic downturn, all sorts of things, and the advice on what people should do next strongly depends on whether it’s really about automation or whether it’s really about something else.”
If the layoff is not truly AI-driven, Stephany suggested that the solution may be simple: finding the same or similar position at another company. For instance, software developers remain in high demand and can transition to other employers without significant retraining. However, for roles becoming obsolete due to AI, upskilling becomes essential.
Glassdoor Chief Economist Daniel Zhao said upskilling can help professionals move into more promising career paths. Stephany described the concept of a professional’s “bundle of skills,” noting that skills never exist in isolation. For example, a software developer may already have management, communication, or analytical abilities alongside technical expertise. Learning complementary skills, such as statistical analysis or AI-related tools, allows workers to pivot without incurring the cost or time of earning a new degree.
Hands typing on a computer keyboard | Source: Pexels
AI literacy is increasingly critical. LinkedIn’s Skills on the Rise report found AI skills top the list of popular abilities added to user profiles and highlighted their importance for employability. Zhao explained, “Just like typing or computer literacy have become universal expectations for many jobs, AI literacy is likely to become a baseline requirement for jobs in the future.” Stephany agreed, emphasizing that demonstrating AI competence signals to employers that professionals are “running with the technology” and “ahead of the wave.” Skills can include writing effective prompts, using AI tools like Copilot, or understanding AI-driven workflows.
Stephany also noted the importance of complementary human-focused skills, such as leadership and team management, which AI cannot replicate. For instance, a software developer might expand into managing teams working with technology. The combination of AI literacy, adjacent skillsets, and irreplaceable soft skills can help professionals remain competitive and valuable in a market increasingly influenced by automation.
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