While experts have differing opinions on the impact of AI on jobs, data is suggesting it is impacting white-collar roles. According to a report, white-collar employment across the S&P 500 has recorded a sharp decline, marking a significant shift in corporate hiring trends. The number of employees fell by 400,000 in 2025 to 28.1 million, posting its first annual drop since 2016. Major corporations, including UPS, Oracle, Amazon, Meta Platforms, Intel, and Microsoft, have laid off thousands of workers in various rounds of layoffs in recent years.
The decline comes after eight consecutive years of uninterrupted growth, during which companies added more than 3 million jobs. The reversal signals a turning point for corporate America and around the world, where workforce expansion is no longer a given.
If you are wondering why these companies are cutting jobs, it is to redirect spending toward artificial intelligence, which is increasingly seen as a strategic priority. The scale and pace of these reductions suggest that companies are not merely trimming excess but are actively reshaping their workforce structures.\
Layoffs likely to continue into 2026
The Bloomberg report suggests the trend is expected to continue into 2026, with several major firms already announcing fresh cuts. Amazon is set to reduce around 16,000 corporate jobs, while Meta is planning to slash roughly 8,000 roles. Microsoft, meanwhile, has offered voluntary buyouts to approximately 8,750 employees.
Financing challenges add to pressure
At the heart of these job cuts is a broader reallocation of resources. As companies invest heavily in AI, spending is being redirected away from traditional white-collar roles. This has worsened as companies turn to alternative funding, since banks have become more cautious and restrictive in lending to AI projects due to concerns about overbuilding, rapid technological changes, and high-power demands.
Recently, Oracle’s massive $300 billion AI data centre initiative with OpenAI has faced significant financing challenges, with several US banks retreating from lending due to exposure limits and risks surrounding the project. Reports suggest, the company is now funding the project through a mix of heavy debt, pre-sold cloud capacity, and existing cash flow.
In early April 2026, Oracle laid off approximately 12,000 employees in India as part of a global restructuring that cut roughly 30,000 jobs, with a focus on streamlining operations.
A structural shift, not a slowdown
This transition reflects a deeper structural change rather than a temporary slowdown. Companies are increasingly prioritising efficiency, automation, and AI-driven productivity over workforce expansion.