Challenger, Gray & Christmas, the US outplacement firm that tallies announced job cuts each month, ranked artificial intelligence fifth among the reasons employers gave for September's 43,281 cuts, in its report of 1 October1. Cuts citing AI still rose, to 3,961 from 3,462 in August, when AI came fourth; four other reasons, led by market and economic conditions, rose past it. The tally that ranked AI first for five months has now placed it outside the top three twice running. Year to date it still leads every stated reason, at 120,136 of 573,195 cuts.
The same report shows technology cuts up 77% on August to 10,799, and announced hiring plans (jobs employers say they intend to fill) of 90,787, the lowest September figure since 2011. Challenger does not publish reasons by industry, so the report cannot say how many of those technology cuts named AI. Andy Challenger of the firm blamed energy costs, the war in Iran, a rate rise that could make hiring dearer and healthcare bills for the weak hiring.
AI accounted for about 9% of September's cuts, less than half its 21% share for the year, which suggests employers named it too readily in the spring. That reading may be right about the layoffs. Challenger counts the reason an employer volunteers when it cuts, and the central-bank studies published since August place the effect mainly in hiring, which no layoff counter records.
