AI has disrupted the upper and lower ends of the employment ladder, though experts warned that fears of mass job cuts may be overblown.
McKinsey said it would slash partner cash compensation as it looks to adjust to the impact of AI on the consulting industry. Meanwhile, Nigerian delivery firm Jumia, one of Africa’s biggest startups, cut 10% of its workforce, part of the company’s goal of becoming “extremely efficient, cheap, and lean,” its CEO told Bloomberg.
But experts say signs of AI upending the labor market remain scant, with a recent survey by the New York Fed showing “firms intend to incorporate AI mainly via retraining, with limited effects on hiring.”