Artificial Intelligence may be a reason for the rising number of layoffs across companies, across sectors, and across continents. But it’s not because the bots are doing your job now. Companies choose to spend their money on buying or building bots instead of paying you. AI is taking away the money, not exactly your job.

A recent report from outplacement firm Challenger, Gray & Christmas showed that American companies attributed 21% of the job cuts to AI. That’s significant until you realise that it’s the fifth on the list of reasons. High energy costs, an uncertain war in Iran, rising cost of capital from rate hikes, and falling demand from a rising cost of living all rank higher than AI.

What’s interesting is that the data doesn't align with pervasive fear. Tech layoffs this year may be the least in three years. Job cuts in 2023 were nearly 80% higher than the trend this year.

We know it’s not a recession, at least not yet. What’s happening is reorganisation.

An interesting trend has emerged in India, in particular. Employees earning ₹20 lakh and above are seeing salary hikes of nearly 18% year-on-year, Mumbai-based hiring consultant Teamlease told CNBC-TV18 recently. For premium skills in the ₹50 lakh-plus bracket, hikes are even higher at 40-45%.

Someone’s gotta pay for it. So, those earning less have had to settle for increments of less than 7%.

While the situation may not be as dire as some Instagram reels suggest, there is enough reason to worry.

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