The head of one of the world’s leading AI companies has issued a stark warning: artificial intelligence could trigger a surge in unemployment that we’re not prepared for.

Dario Amodei, CEO of Anthropic, told CNN’s Anderson Cooper that AI is rapidly surpassing humans at nearly every intellectual task. “We’re going to collectively, as a society, grapple with it,” Amodei said. “AI is going to get better at what everyone does — including CEOs like me.”

How bad could it get? Amodei predicts that AI could wipe out half of all entry-level white-collar jobs, pushing unemployment in the U.S. as high as 20% within the next five years. For context, the last time unemployment neared that level was during the peak of the COVID-19 pandemic.

This isn’t just a casual forecast — it’s a warning from someone at the forefront of the AI revolution. And it comes as Anthropic unveils AI technology designed to work nearly a full human workday on complex tasks, with minimal supervision.

Why This Matters: White-Collar Jobs at Risk

Historically, technology has tended to replace low-skilled jobs, with the idea that displaced workers could retrain for better-paying roles. But Amodei’s warning flips that script: AI might soon replace specialized, highly educated professionals — people who’ve invested years in training and schooling. And retraining at that level may not be easy or even possible on a large scale.

He even suggests that governments consider taxing AI companies to help offset the societal impacts. “If AI creates huge total wealth, a lot of that will, by default, go to the AI companies and less to ordinary people,” Amodei said. “It’s not in my economic interest to say that, but I think this is something we should consider — and it shouldn’t be a partisan issue.”

Jobs in the Crosshairs: Who’s Most Vulnerable?

From paralegals to payroll clerks, financial advisers to software coders, many white-collar roles could face major upheaval. Meta CEO Mark Zuckerberg recently predicted that AI will write half of Facebook’s code within a year, and Microsoft’s Satya Nadella said AI already writes about 30% of Microsoft’s code.

Amodei shared that about 40% of people using Anthropic’s AI are employing it to fully automate jobs, while 60% use it to augment their work — and the automation number is growing. Just last week, Anthropic launched an AI model that can work independently for nearly seven hours straight.

A Rapid, Unprecedented Shift

What sets this AI revolution apart is its speed and scope. Amodei warns this wave of change is “faster, broader, harder to adapt to” than previous technological shifts. Most people don’t realize how quickly AI is evolving.

While some experts believe AI will mostly automate tasks rather than entire jobs, and others think the pace may slow as AI runs out of training data, there’s broad agreement on one thing: it’s time to start planning for AI’s economic impact.

University of Virginia economist Anton Korinek put it plainly: “Historically, the economy has created new jobs to replace old ones. But intelligent machines might be able to do those new jobs, too — and faster than humans.”

The Silver Lining: AI’s Potential to Help Humanity

Amodei isn’t sounding the alarm just to scare people. He believes AI can help solve major challenges — from curing diseases to advancing human knowledge. “I wouldn’t be building this technology if I didn’t think it could make the world better,” he said.

His warnings also build his reputation as a responsible leader who wants to steer AI development carefully, amid growing public and governmental scrutiny. Tech futurist Tracey Follows explained, “By raising these concerns now, Amodei is being transparent. If AI causes major disruption in the next five years, Anthropic can say they warned us.”

What’s Next? Facing the AI Future Together

Amodei told Cooper he’s “raising the alarm” because others in the industry haven’t been as vocal. “I don’t think we can stop this bus,” he said. “But I hope to steer the technology so we’re aware of and address the harms — while still unlocking the benefits.”

The AI revolution is already here — and it’s changing how we work faster than most of us realize. The question now is how society, business leaders, and policymakers will respond before the economic shockwaves hit.

Source: CNN – Why this leading AI CEO is warning the tech could cause mass unemployment

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Volvo Cars is laying off 3,000 employees worldwide as part of a major cost-cutting effort to weather ongoing economic headwinds and industry uncertainty.

The Sweden-based automaker announced on Monday that the bulk of the job cuts—about 2,200—will impact positions in its home country. That includes around 1,200 direct employees and roughly 1,000 consultants, most of whom are based in Sweden. The remaining 800 job reductions will take place across various global markets. Most of the affected roles are office-based.

“These decisions have not been easy,” said Volvo Cars CEO Håkan Samuelsson. “But they’re necessary steps toward building a stronger, more resilient Volvo Cars. The auto industry is navigating a difficult period, and we need to improve cash flow and structurally reduce costs to move forward.”

Background: A Challenging Road for Automakers

Volvo’s announcement comes amid a turbulent time for the global automotive industry. Once booming, the sector now faces several pressures—from rising raw material costs and supply chain disruptions to geopolitical tensions and shifting consumer demand.

The European car market, long a stronghold for Volvo, has cooled considerably. In addition, new tariffs imposed by the U.S. government—specifically a 25% duty on imported cars and steel—have complicated trade and added to manufacturing costs for companies like Volvo.

This strain isn’t unique to Volvo. Carmakers worldwide are adjusting their strategies to survive in an environment that’s changing fast. Electric vehicle (EV) investments, stricter emissions regulations, and the push for sustainability have already forced many companies to rethink their operations, often at a steep price.

Volvo’s Strategy: Streamlining to Stay Competitive

Volvo Cars, owned by Chinese automotive giant Geely, operates with roughly 42,600 full-time employees. Its global footprint includes manufacturing sites in Belgium, South Carolina, and China, alongside its headquarters and main product development center in Gothenburg, Sweden.

The job cuts focus mostly on office positions, signaling a shift to streamline corporate functions and improve efficiency. The goal is to strengthen the company’s financial position so it can continue investing in future technologies, including electric and autonomous vehicles.

As Volvo navigates these challenges, it joins a growing list of automakers making tough choices to adapt to a rapidly evolving industry landscape. The company’s willingness to restructure now may help it emerge leaner and more resilient in the years ahead.

Source: AP News – Volvo Cars cutting 3,000 jobs to reduce costs

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Workday is laying off 1,750 employees, accounting for 8.5% of its workforce, as part of its ongoing restructuring efforts.

CEO: Layoffs Necessary for Growth and AI Investments

In a memo to employees on Wednesday, CEO Carl Eschenbach described the layoffs as a strategic move to position Workday for future growth, particularly in artificial intelligence (AI) investments.

“As we start our new fiscal year, we’re at a pivotal moment,” Eschenbach wrote in a securities filing. “Companies everywhere are reimagining how work gets done, and the increasing demand for AI has the potential to drive a new era of growth for Workday.”

Employee Notifications and Support

Workday plans to notify most affected employees on Wednesday. Acknowledging the impact of the decision, Eschenbach encouraged employees to work remotely or head home for the day.

Laid-off U.S. employees will receive at least 12 weeks of severance pay, with additional compensation based on tenure. Employees in other countries will receive severance packages in accordance with local labor laws.

Office Space Reduction and Global Expansion

As part of the restructuring, Workday also plans to exit certain office spaces, though specific locations and timelines were not disclosed. Despite the layoffs, the company aims to expand its global presence by investing in strategic locations and will continue hiring for select roles.

Financial Impact and Industry Context

Workday anticipates restructuring costs between $230 million and $270 million, covering severance, employee benefits, and other related expenses.

The job cuts come as the tech sector continues to see widespread layoffs, with Intel, Cisco, and Apple also making significant workforce reductions over the past year. Many companies are restructuring to remain competitive while shifting their focus toward AI and evolving market demands.

Financial Performance and Market Reaction

Workday is set to release its full-year 2025 earnings later this month. In the third quarter, the company reported:
* Net income: $193 million (up from $132 million the previous year)
* Revenue: $2.16 billion (up from $2.09 billion)

Despite the layoffs, Workday’s stock rose more than 2.5% in midday trading on Wednesday.

Source

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Party City, the iconic U.S. party supply retailer, is shutting down all its stores, ending nearly 40 years of business. CNN reports that the company will wind down operations immediately, marking the end of an era.

CEO’s Heartbreaking Announcement

In a video call with employees, CEO Barry Litwin shared the devastating news, telling staff that today would be their last day of work. The company, which has struggled for months, will not provide severance pay or extend employee benefits as it closes its doors.

“This is, without a doubt, the hardest message I’ve ever had to deliver,” Litwin said, expressing his sorrow over the company’s collapse. Despite Party City’s best efforts, it could not overcome its financial challenges, including soaring inflation and rising operational costs, which ultimately led to a significant decline in consumer spending.

Litwin acknowledged that Party City had fought tirelessly to avoid this outcome, but financial pressures made the winddown process inevitable.

A Long Road to Bankruptcy

The New Jersey-based company had only appointed Litwin as CEO four months ago, with his stated mission to improve Party City’s financial health. In January 2023, the company filed for bankruptcy, burdened by a staggering $1.7 billion in debt. The bankruptcy allowed it to eliminate nearly $1 billion in debt but still left the company with over $800 million to pay off, straining its finances throughout 2024.

Though Party City managed to keep most of its 800+ stores open, it closed more than 80 locations between 2022 and 2024, and its debt continued to weigh on its ability to recover.

A Sudden and Emotional End

The closure announcement shocked Party City employees, many of whom had not been informed of the company’s dire situation. Employees were sent home on December 10, and the corporate headquarters was locked down. Internal communications revealed growing confusion and frustration among staff, particularly after product development teams were abruptly recalled from a vendor trip and sent home.

Several workers expressed anger over the lack of transparency from management, especially after previous town hall meetings that projected optimism about the company’s future. Litwin later apologized for the communication breakdown, acknowledging the company’s failure to adequately inform employees about the impending closure.

Tearful Goodbyes and Hard Realities

Party City’s Chief Human Resources Officer, Karen McGowan, became emotional during the call, visibly shaken as she outlined the termination of benefits and severance for employees. “I certainly know this is a lot to take in,” McGowan said, her voice faltering as she paused to compose herself.

End of an Era for Party City

Once the largest party supply retailer in the U.S., Party City employed over 16,000 full-time and part-time workers in 2021. Known for selling balloons, Halloween costumes, and various party supplies, the company had long faced fierce competition from e-commerce giants, pop-up stores like Spirit Halloween, and large retailers such as Walmart, Amazon, and Costco.

The pandemic and a helium shortage further damaged Party City’s balloon business, adding to the financial strain. As consumer spending tightened in response to rising living costs, Party City became one of the latest casualties in a wave of retail bankruptcies.

Retail Decline Across the Nation

Party City’s closure comes as part of a broader trend of retail store closures in 2024, a year on track to see the highest number of closures since 2020. Just days ago, Big Lots announced it was also going out of business after a failed attempt to secure a rescue deal.

The growing list of retailer bankruptcies highlights the ongoing struggles faced by brick-and-mortar businesses as they navigate rising costs and shifting consumer habits.

Party City’s closure marks a major shift in the landscape of U.S. retail, signaling the end of a popular brand that had become synonymous with celebrations for decades.

Source

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