AI layoffs are just getting started

In a move that has sent ripples through the tech industry, Cognizant CEO Ravi Kumar recently announced the replacement of 150 entry-level workers with artificial intelligence. This development, characterized as "grim news" by many observers, represents not just another corporate cost-cutting measure but potentially signals a fundamental shift in how companies view their workforce in relation to advancing AI capabilities.

The Cognizant situation highlights several critical developments in the AI-human workforce dynamic:

• Cognizant specifically targeted entry-level positions—the traditional starting point for careers—suggesting AI may be closing traditional pathways into professional services and knowledge work

• The company framed this not as experimental but as a strategic business decision driven by client demand for AI integration, indicating market forces are accelerating adoption

• Despite assurances about retraining, the reality remains that 150 real jobs disappeared, with unclear outcomes for those workers despite the company's $2 billion investment in training programs

• The move comes amid broader tech industry layoffs totaling over 260,000 since 2022, revealing how AI implementation is becoming intertwined with workforce restructuring

The most concerning insight from this development isn't just that AI can replace workers—we've known that theoretically for years—but rather how quickly implementation is happening now that generative AI has reached sufficient capability. Companies are no longer just experimenting with AI; they're actively restructuring their workforce around it. The pace has caught many by surprise, including those who believed knowledge workers would remain insulated from automation for much longer.

This acceleration matters because it's happening before our educational systems, regulatory frameworks, or social safety nets have adequately adapted. Unlike previous technological revolutions that unfolded over decades, generative AI is being implemented across industries in a matter of months. Most concerning is that these initial 150 jobs were entry-level positions—traditionally how people get their foot in the door and develop professional skills. If AI closes these pathways, we face not just temporary displacement but potentially permanent career barriers for coming generations.

What the Cognizant example doesn't fully address is the quality gap that still exists in AI work output. While companies are eager to implement AI solutions, the reality is more nuanced than simple replacement. At financial services firm JPMorgan Chase, which has