Business
Companies keep slashing jobs. How worried should workers be about AI replacing them?
Tech companies that are cutting jobs and leaning more on artificial intelligence are also disrupting themselves.
Amazon’s Chief Executive Andy Jassy said last month that he expects the e-commerce giant will shrink its workforce as employees “get efficiency gains from using AI extensively.”
At Salesforce, a software company that helps businesses manage customer relationships, Chief Executive Marc Benioff said last week that AI is already doing 30% to 50% of the company’s work.
Other tech leaders have chimed in. Earlier this year, Anthropic, an AI startup, flashed a big warning: AI could wipe out more than half of all entry-level white-collar jobs in the next one to five years.
Ready or not, AI is reshaping, displacing and creating new roles as technology’s impact on the job market ripples across multiple sectors. The AI frenzy has fueled anxiety from workers who fear their jobs could be automated. Roughly half of U.S. workers are worried about how AI may be used in the workplace in the future, and few think AI will lead to more job opportunities in the long run, according to a Pew Research Center report.
The heightened fear comes as major tech companies, such as Microsoft, Intel, Amazon and Meta cut workers, push for more efficiency and promote their AI tools. Tech companies have rolled out AI-powered features that can generate code, analyze data, develop apps and help complete other tedious tasks.
“AI isn’t just taking jobs. It’s really rewriting the rule book on what work even looks like right now,” said Robert Lucido, senior director of strategic advisory at Magnit, a company based in Folsom, Calif., that helps tech giants and other businesses manage contractors, freelancers and other contingent workers.
Disruption debated
Exactly how big of a disruption AI will have on the job market is still being debated. Executives for OpenAI, the maker of popular chatbot ChatGPT, have pushed back against the prediction that a massive white-collar job bloodbath is coming.
“I do totally get not just the anxiety, but that there is going to be real pain here, in many cases,” said Sam Altman, chief executive of OpenAI, at an interview with “Hard Fork,” the tech podcast from the New York Times. ”In many more cases, though, I think we will find that the world is significantly underemployed. The world wants way more code than can get written right now.”
As new economic policies, including those around tariffs, create more unease among businesses, companies are reining in costs while also being pickier about whom they hire.
“They’re trying to find what we call the purple unicorns rather than someone that they can ramp up and train,” Lucido said.
Before the 2022 launch of ChatGPT — a chatbot that can generate text, images, code and more —tech companies were already using AI to curate posts, flag offensive content and power virtual assistants. But the popularity and apparent superpowers of ChatGPT set off a fierce competition among tech companies to release even more powerful generative AI tools. They’re racing ahead, spending hundreds of billions of dollars on data centers, facilities that house computing equipment such as servers used to process the trove of information needed to train and maintain AI systems.
Economists and consultants have been trying to figure out how AI will affect engineers, lawyers, analysts and other professions. Some say the change won’t happen as soon as some tech executives expect.
“There have been many claims about new technologies displacing jobs, and although such displacement has occurred in the past, it tends to take longer than technologists typically expect,” economists for the U.S. Bureau of Labor Statistics said in a February report.
AI can help develop, test and write code, provide financial advice and sift through legal documents. The bureau, though, still projects that employment of software developers, financial advisors, aerospace engineers and lawyers will grow faster than the average for all occupations from 2023 to 2033. Companies will still need software developers to build AI tools for businesses or maintain AI systems.
Worker bots
Tech executives have touted AI’s ability to write code. Meta Chief Executive Mark Zuckerberg has said that he thinks AI will be able to write code like a mid-level engineer in 2025. And Microsoft Chief Executive Satya Nadella has said that as much as 30% of the company’s code is written by AI.
Other roles could grow more slowly or shrink because of AI. The Bureau of Labor Statistics expects employment of paralegals and legal assistants to grow slower than the average for all occupations while roles for credit analysts, claims adjusters and insurance appraisers to decrease.
McKinsey Global Institute, the business and economics research arm of the global management consulting firm McKinsey & Co., predicts that by 2030 “activities that account for up to 30 percent of hours currently worked across the US economy could be automated.”
The institute expects that demand for science, technology, engineering and mathematics roles will grow in the United States and Europe but shrink for customer service and office support.
“A large part of that work involves skills, which are routine, predictable and can be easily done by machines,” said Anu Madgavkar, a partner with the McKinsey Global Institute.
Although generative AI fuels the potential for automation to eliminate jobs, AI can also enhance technical, creative, legal and business roles, the report said. There will be a lot of “noise and volatility” in hiring data, Madgavkar said, but what will separate the “winners and losers” is how people rethink their work flows and jobs themselves.
Tech companies have announced 74,716 cuts from January to May, up 35% from the same period last year, according to a report from Challenger, Gray & Christmas, a firm that offers job search and career transition coaching.
Tech companies say they’re reducing jobs for various reasons.
Autodesk, which makes software used by architects, designers and engineers, slashed 9% of its workforce, or 1,350 positions, this year. The San Francisco company cited geopolitical and macroeconomic factors along with its efforts to invest more heavily in AI as reasons for the cuts, according to a regulatory filing.
Other companies such as Oakland fintech company Block, which trimmed 8% of its workforce in March, told employees that the cuts were strategic not because they’re “replacing folks with AI.”
Diana Colella, executive vice president, entertainment and media solutions at Autodesk, said that it’s scary when people don’t know what their job will look like in a year. Still, she doesn’t think AI will replace humans or creativity but rather act as an assistant.
Companies are looking for more AI expertise. Autodesk found that mentions of AI in U.S. job listings surged in 2025 and some of the fastest-growing roles include AI engineer, AI content creator and AI solutions architect. The company partnered with analytics firm GlobalData to examine nearly 3 million job postings over two years across industries such as architecture, engineering and entertainment.
Workers have adapted to technology before. When the job of a door-to-door encyclopedia salesman was disrupted because of the rise of online search, those workers pivoted to selling other products, Colella said.
“The skills are still key and important,” she said. “They just might be used for a different product or a different service.”
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
Business
Aspiration co-founder sentenced to 14 years for fraud
The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.
The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.
Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.
Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.
Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.
In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.
The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.
Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.
The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.
The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.
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