The AI job apocalypse is a myth: layoffs are the real problem

Fired layoff robot ai

Artificial intelligence is often blamed when companies announce layoffs, but new data shows the picture is far less dramatic. While some tasks are being reshaped by AI, most jobs are not disappearing. The bigger problem comes from business leaders choosing cuts instead of retraining.

TechWolf, a workforce intelligence company, has released its Workforce Intelligence Index. It draws on more than two billion job postings collected worldwide between 2015 and 2025. The numbers tell a different story from the headlines. Only 18 percent of tasks can be fully automated. About 62 percent of work remains entirely human. Another 38 percent falls into the category of disruption, meaning tasks that can be either automated or augmented by AI.

That means most workers are not being replaced. They are facing change, and change can be managed through reskilling. According to the data, 75 percent of employees at large technology firms have the potential to retrain into AI-augmented roles. Yet too often, companies fall back on layoffs, a move that may cut costs in the short term but weakens innovation and morale for years.

Engineering jobs are a prime example. These roles are often painted as endangered, especially with the rise of AI-assisted coding tools. The Index shows the opposite. Engineers are shifting into roles where AI speeds up development, improves code quality, and frees up time for more complex architecture and design work.

Some of the biggest names in tech highlight this potential. Microsoft shows 86 percent of its workforce could benefit from retraining. IBM sits at 85 percent, Dell at 79 percent, Apple at 75 percent, Cisco at 70 percent, and Qualcomm at 71 percent. In all of these cases, layoffs risk throwing away talent that could instead be retrained to master AI-driven tools.

The same trend shows up outside of tech. Healthcare workers can be trained to work alongside AI in diagnostics and administration. Retail employees can move from repetitive logistics tasks to data-driven customer engagement. Even within industries, the picture varies. For example, one pharmaceutical company’s supply chain may be ripe for AI adoption, while another company’s sales team shows little disruption.

The big takeaway is simple. AI is not triggering mass unemployment. It is reshaping tasks. The real damage comes when executives rush to layoffs instead of investing in their people. Companies that choose reskilling are better positioned to keep expertise, maintain culture, and capture the productivity gains that AI can actually deliver.

Author

  • Brian Fagioli, journalist at NERDS.xyz

    Brian Fagioli is a technology journalist and founder of NERDS.xyz. Known for covering Linux, open source software, AI, and cybersecurity, he delivers no-nonsense tech news for real nerds.

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