How AI Is Taking Over Management Positions at UPS and What Jobs Could Be Next
Written by
Cameron Diiorio
Edited by
Cynthia Measom
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From the automotive to the technology sectors, layoffs are on the rise in 2024, and UPS has followed suit.
In early 2024, UPS laid off around 12,000 of its workers, citing loss in revenue as a reason for cutting workers. AI is also a contributing factor of these layoffs, and in the future, job security in other industries may also be threatened by AI.
UPS Layoffs
At UPS, revenue in 2023 fell more than 9%. Due to this, and other contributing factors such as unionization that led to consumers switching over to UPS competitors, UPS made the decision to layoff a large number of its employees.
According to reporting from CNN, UPS cut 12,000 workers as part of a bid to save $1 billion in costs; managers and contractor positions were the bulk of those layoffs. UPS plans to close these positions permanently and are instead opting to leverage AI. Effectively, AI is replacing the roles of the employees who where laid off.
The Future of the Job Market and AI
Workers in factories and farms have long since felt the threat of robots one day overtaking their positions. But with the capabilities of modern AI, jobs such as accountants, writers and analysts also have the potential to be replaced.
A CNBC/SurveyMonkey Workforce Survey found that around 25% of workers fear that AI will make their jobs obsolete. AI is a very real threat looming over both blue and white-collar workers alike.
With the way that AI is rapidly evolving, there is no saying what jobs may still be available in five to 10 years. Of course, AI may also remain as a tool that can assist us in our everyday lives.
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