Back to Articles
AI Drives the Biggest Wave of Job Cuts in More Than a Decade
YourLifeChoices
READ
Details
- Date Published
- 28 Jan 2026
- Priority Score
- 3
- Australian
- Yes
- Created
- 28 Jan 2026, 11:00 am
Authors (1)
Description
Are more jobs at risk than we think? Image Source: Aerps.com / Unsplash
Summary
The article examines the impact of AI on job markets, highlighting a significant wave of layoffs influenced by automation. Key sectors including technology have witnessed sizeable workforce reductions, mirroring trends observed during the 2008 financial crisis. However, the Australian perspective is notably different, with a smaller proportion of jobs at high risk and a measured approach towards integrating AI into the workforce. The article underscores AI's potential to augment rather than entirely replace jobs, providing optimism for workers, especially older Australians, who possess valuable experience and skills that AI cannot replicate.
Body
Are more jobs at risk than we think? Image Source: Aerps.com / Unsplash
When Katherine walked into that Sydney medical clinic meeting just before Christmas, she knew something wasn’t right.
Four days before the holidays, the 24-year-old receptionist and three colleagues were told their jobs would be handed over to artificial intelligence (AI).
It’s a scenario playing out across the globe, but the Australian experience might surprise you.
In this article
The global picture paints a concerning trend
1-min read
Australia’s more measured approach
1-min read
When workers fight back—and win
1-min read
What this means for older Australians
1-min read
Practical steps for staying relevant
1-min read
Looking ahead with cautious optimism
1-min read
The global picture paints a concerning trend
Return to Table of Contents
Comments
Across the globe, the scale of job losses is striking. The United States employment firm Challenger, Gray & Christmas reported that 1.2 million positions were cut last year.
This marked a 58 per cent increase compared with roughly 760,000 layoffs in 2024.
It is the highest level of workforce reductions since 2020, approaching the scale seen during the 2008 financial crisis.
The tech sector bore the brunt of these cuts, with 154,000 roles slashed in 2025 alone, a 15 per cent increase from the previous year.
Major companies such as Meta revealed a five per cent workforce reduction, impacting 3,600 employees.
Meanwhile, Microsoft dismissed 15,000 staff members over two separate rounds of cuts.
Amazon intends to cut up to 30,000 roles, with chief executive officer Andy Jassy acknowledging the company 'will need fewer people doing some of the jobs that are being done today'.
'You're not going to slow it down. How do you have plans in place to make it work better if it does something terrible?'
Jamie Dimon, CEO JPMorgan Chase
Jamie Dimon, chief executive officer of JPMorgan Chase, warned at the World Economic Forum that the bank is likely to have fewer employees over the next five years, noting that sudden AI-driven layoffs could spark 'civil unrest'.
He proposed introducing government limits on job reductions due to AI and implementing extensive retraining programs for affected workers.
Australia's more measured approach
Return to Table of Contents
Comments
But here's where the Australian story diverges from the global panic. Research from the Reserve Bank of Australia indicates that roughly four per cent of the current workforce faces a high risk of AI automation.
A further 21 per cent of workers are considered to have medium-to-high exposure to AI technologies.
Crucially, there is currently no sign of large-scale job losses at entry level in Australia, which may be due in part to the country still being in the early stages of AI implementation.
<img decoding="async" width="1024" height="683" src="https://assets.yourlifechoices.com.au/2026/01/28185256/shutterstock_604989587_work_job_fired_labor_YAKOBCHUK-VIACHESLAV-1024x683.jpg" alt="" class="wp-image-1919240" srcset="https://assets.yourlifechoices.com.au/2026/01/28185256/shutterstock_604989587_work_job_fired_labor_YAKOBCHUK-VIACHESLAV-1024x683.jpg 1024w, https://assets.yourlifechoices.com.au/2026/01/28185256/shutterstock_604989587_work_job_fired_labor_YAKOBCHUK-VIACHESLAV-300x200.jpg 300w, https://assets.yourlifechoices.com.au/2026/01/28185256/shutterstock_604989587_work_job_fired_labor_YAKOBCHUK-VIACHESLAV-768x512.jpg 768w, https://assets.yourlifechoices.com.au/2026/01/28185256/shutterstock_604989587_work_job_fired_labor_YAKOBCHUK-VIACHESLAV-1536x1024.jpg 1536w, https://assets.yourlifechoices.com.au/2026/01/28185256/shutterstock_604989587_work_job_fired_labor_YAKOBCHUK-VIACHESLAV-2048x1365.jpg 2048w, https://assets.yourlifechoices.com.au/2026/01/28185256/shutterstock_604989587_work_job_fired_labor_YAKOBCHUK-VIACHESLAV-630x420.jpg 630w, https://assets.yourlifechoices.com.au/2026/01/28185256/shutterstock_604989587_work_job_fired_labor_YAKOBCHUK-VIACHESLAV-150x100.jpg 150w, https://assets.yourlifechoices.com.au/2026/01/28185256/shutterstock_604989587_work_job_fired_labor_YAKOBCHUK-VIACHESLAV-696x464.jpg 696w, https://assets.yourlifechoices.com.au/2026/01/28185256/shutterstock_604989587_work_job_fired_labor_YAKOBCHUK-VIACHESLAV-1068x712.jpg 1068w, https://assets.yourlifechoices.com.au/2026/01/28185256/shutterstock_604989587_work_job_fired_labor_YAKOBCHUK-VIACHESLAV-1920x1280.jpg 1920w, https://assets.yourlifechoices.com.au/2026/01/28185256/shutterstock_604989587_work_job_fired_labor_YAKOBCHUK-VIACHESLAV-72x48.jpg 72w, https://assets.yourlifechoices.com.au/2026/01/28185256/shutterstock_604989587_work_job_fired_labor_YAKOBCHUK-VIACHESLAV-144x96.jpg 144w" sizes="(max-width: 1024px) 100vw, 1024px" />AI‑driven automation fuels record job cuts as companies accelerate workforce restructuring. Image Source: YAKOBCHUK VIACHESLAV / Shutterstock
The government’s Jobs and Skills Australia study provides further reassurance, noting that AI technologies have 'a greater capacity to enhance work' rather than replace it, based on their analysis across the entire economy.
This means rather than replacing workers entirely, AI is more likely to help them do their jobs better.
That said, certain roles remain vulnerable. Administrative and clerical positions are at the greatest risk of being affected, with data entry clerks the most vulnerable.
The International Labour Organisation estimates that AI could carry out or improve roughly 70 per cent of the tasks currently performed in these roles.
Jobs most at risk in Australia
Based on government research, these roles face the highest automation risk:
Data entry clerks
Record-keeping staff
Basic accounting positions
Communications coordinators
Administrative assistants
Jobs considered safer:
Bricklayers
Dental assistants
Construction workers
Healthcare support roles
Teachers and educators
When workers fight back—and win
Return to Table of Contents
Comments
Here's something that might give you hope: the Commonwealth Bank of Australia cancelled planned AI-related job cuts following employee opposition, showing that human input can still shape AI’s role in the workplace.
This wasn't just about protests; it demonstrated that companies recognise the value of human expertise and the risks of moving too quickly.
The bank's reversal reflects a broader Australian approach that seems more thoughtful than the slash-and-burn mentality seen overseas.
Australian businesses appear to be taking time to understand how AI can work alongside humans rather than simply replacing them.
What this means for older Australians
Return to Table of Contents
Comments
For those older Australians, the AI revolution presents unique challenges and opportunities.
If you've built decades of experience in administrative roles, the changing landscape might feel daunting.
However, your experience brings something AI can't replicate: institutional knowledge, relationship skills, and the ability to handle complex, nuanced situations.
The key is understanding that most AI implementations aim to remove tedious tasks, potentially freeing you to focus on more meaningful work.
<img decoding="async" width="1024" height="683" src="https://assets.yourlifechoices.com.au/2026/01/28185419/shutterstock_2520071063_AI_Thapana_Studio-1024x683.jpg" alt="" class="wp-image-1919241" srcset="https://assets.yourlifechoices.com.au/2026/01/28185419/shutterstock_2520071063_AI_Thapana_Studio-1024x683.jpg 1024w, https://assets.yourlifechoices.com.au/2026/01/28185419/shutterstock_2520071063_AI_Thapana_Studio-300x200.jpg 300w, https://assets.yourlifechoices.com.au/2026/01/28185419/shutterstock_2520071063_AI_Thapana_Studio-768x512.jpg 768w, https://assets.yourlifechoices.com.au/2026/01/28185419/shutterstock_2520071063_AI_Thapana_Studio-1536x1024.jpg 1536w, https://assets.yourlifechoices.com.au/2026/01/28185419/shutterstock_2520071063_AI_Thapana_Studio-2048x1365.jpg 2048w, https://assets.yourlifechoices.com.au/2026/01/28185419/shutterstock_2520071063_AI_Thapana_Studio-630x420.jpg 630w, https://assets.yourlifechoices.com.au/2026/01/28185419/shutterstock_2520071063_AI_Thapana_Studio-150x100.jpg 150w, https://assets.yourlifechoices.com.au/2026/01/28185419/shutterstock_2520071063_AI_Thapana_Studio-696x464.jpg 696w, https://assets.yourlifechoices.com.au/2026/01/28185419/shutterstock_2520071063_AI_Thapana_Studio-1068x712.jpg 1068w, https://assets.yourlifechoices.com.au/2026/01/28185419/shutterstock_2520071063_AI_Thapana_Studio-1920x1280.jpg 1920w, https://assets.yourlifechoices.com.au/2026/01/28185419/shutterstock_2520071063_AI_Thapana_Studio-72x48.jpg 72w, https://assets.yourlifechoices.com.au/2026/01/28185419/shutterstock_2520071063_AI_Thapana_Studio-144x96.jpg 144w" sizes="(max-width: 1024px) 100vw, 1024px" />Tech firms lead the surge as rapid AI adoption replaces thousands of roles. Image Source: Thapana_Studio / Shutterstock
Customer service roles, for instance, might use AI to handle basic queries while human staff tackle complex problems requiring empathy and experience.
Practical steps for staying relevant
Return to Table of Contents
Comments
Rather than panicking, consider these approaches:
Embrace the assistant mindset: Think of AI as a sophisticated tool rather than a replacement. Many successful older workers are learning to use AI to enhance their productivity.
Highlight your irreplaceable skills: Focus on abilities that require human judgment, emotional intelligence, and complex problem-solving. These remain highly valued.
Stay curious: Take advantage of free online courses through libraries or community centres. Even basic digital literacy can make a significant difference.
Network within your industry: Connect with colleagues to understand how AI is being implemented in your field. Often, the reality is less dramatic than the headlines suggest.
The Australian AI employment outlook
Only four per cent of Australian workers face a high automation risk.
Government research shows AI more likely to enhance rather than replace jobs.
Administrative roles most vulnerable, but construction and healthcare safer.
Successful worker pushback demonstrates human influence remains strong.
Older workers' experience and judgment skills remain highly valuable.
Looking ahead with cautious optimism
Return to Table of Contents
Comments
While Katherine's story from that Sydney clinic shows AI displacement is real, it's worth remembering that Australia's experience differs markedly from the dramatic cuts seen in American tech companies.
Our more measured approach, combined with strong worker protections and union advocacy, suggests a path forward that values human contribution alongside technological advancement.
The challenge isn't to stop AI; that's impossible. Instead, it's about ensuring the transition benefits workers as well as businesses.
With proper planning, retraining opportunities, and recognition of the unique value that experienced workers bring, there's reason for cautious optimism.
The future workplace will likely feature humans and AI working together, each contributing their strengths.
For older Australians, this could mean less time on repetitive tasks and more opportunity to apply decades of wisdom and experience to complex challenges that require a human touch.
What are your thoughts on AI in the workplace? Have you noticed changes in your industry, or do you have concerns about how this technology might affect your career? Share your experiences in the comments below. Your perspective could help fellow readers navigate these changing times.
Crack the code on commentingWant to join the conversation but feel like it’s a puzzle? Don’t worry—it’s easier than you think. Whether you’re on your phone, tablet, or laptop, we’ve got the steps laid out for you. Once you’ve mastered it, why not make it even simpler? Our app on Google Play and the App Store puts all the tools (and conversations) right at your fingertips.
What did you think of this article?
Give us a thumbs up or a thumbs down!
Like
0
Dislike
0
Also Read:
Mastercard’s AI shopping assistant is coming to Australia—can you trust it?
Share on Facebook
Share via Email
Sharing is caring
<img width="80" height="80" src="https://assets.yourlifechoices.com.au/2024/12/04200936/Image-from-iOS-2-96x96.jpg" class="avatar avatar-80 photo ylc-author-avatar" alt="Abegail Abrugar" decoding="async" srcset="https://assets.yourlifechoices.com.au/2024/12/04200936/Image-from-iOS-2-96x96.jpg 96w, https://assets.yourlifechoices.com.au/2024/12/04200936/Image-from-iOS-2-300x300.jpg 300w, https://assets.yourlifechoices.com.au/2024/12/04200936/Image-from-iOS-2-150x150.jpg 150w, https://assets.yourlifechoices.com.au/2024/12/04200936/Image-from-iOS-2.jpg 364w, https://assets.yourlifechoices.com.au/2024/12/04200936/Image-from-iOS-2-24x24.jpg 24w, https://assets.yourlifechoices.com.au/2024/12/04200936/Image-from-iOS-2-48x48.jpg 48w" sizes="(max-width: 80px) 100vw, 80px" />
Abegail Abrugar
Abby is a dedicated writer with a passion for coaching, personal development, and empowering individuals to reach their full potential. With a strong background in leadership, she provides practical insights designed to inspire growth and positive change in others.
Sources
Primary Source
https://www.news.com.au/finance/work/ai-fuels-record-job-cuts-as-top-firms-slash-thousands-of-roles/news-story/709124ad31cc7d6c61da7f8d500f5ac9
Technology Investment and AI: What Are Firms Telling Us? | Bulletin – November 2025 | RBA
Cited text: Estimates for Australia suggest that only around 4 per cent of the current workforce are highly exposed to AI automation, while around 21 per cent hav...Excerpt: Research from the Reserve Bank of Australia suggests only around 4% of the current workforce are highly exposed to AI automation, while around 21% have medium-to-high exposure
https://www.rba.gov.au/publications/bulletin/2025/nov/technology-investment-and-ai-what-are-firms-telling-us.html
Aussie jobs most vulnerable to AI outlined in govt study | Information Age | ACS
Cited text: There was no evidence of widespread displacement of entry-level jobs in Australia yet, according to the report, which suggested this “may partly refle...Excerpt: there's no evidence of widespread displacement of entry-level jobs in Australia yet, which may partly reflect the early stage of adoption domestically
https://ia.acs.org.au/article/2025/aussie-jobs-most-vulnerable-to-ai-outlined-in-govt-study.html
Aussie jobs most vulnerable to AI outlined in govt study | Information Age | ACS
Cited text: ... AI technologies have 'a greater capacity to augment work' than automate it, according to an economy-wide study by Jobs and Skills Australia.Excerpt: AI technologies have 'a greater capacity to augment work' than automate it
https://ia.acs.org.au/article/2025/aussie-jobs-most-vulnerable-to-ai-outlined-in-govt-study.html
Aussie jobs most vulnerable to AI outlined in govt study | Information Age | ACS
Cited text: The first-of-its-kind Generative AI Capacity Study, carried out by Jobs and Skills Australia, found the technology had “a greater capacity to augment ...Excerpt: AI technologies have 'a greater capacity to augment work' than automate it
https://ia.acs.org.au/article/2025/aussie-jobs-most-vulnerable-to-ai-outlined-in-govt-study.html
Aussie jobs most vulnerable to AI outlined in govt study | Information Age | ACS
Cited text: “This has the potential to displace people in some jobs, particularly administrative and clerical roles,” he said. Excerpt: Administrative and clerical roles face the highest risk of displacement
https://ia.acs.org.au/article/2025/aussie-jobs-most-vulnerable-to-ai-outlined-in-govt-study.html
Generative AI to augment and advance the way we work in Australia | Jobs and Skills Australia
Cited text: This has the potential to displace people in some jobs, particularly administrative and clerical roles.Excerpt: Administrative and clerical roles face the highest risk of displacement
https://www.jobsandskills.gov.au/news/generative-ai-augment-and-advance-way-we-work-australia
These jobs will thrive – but others may vanish – as AI transforms Australia’s workforce
Cited text: The most exposed occupation is data entry clerk, for which the International Labour Organization estimates 70% of the tasks currently done by humans c...Excerpt: data entry clerks most exposed - the International Labour Organization estimates 70% of their current tasks could be done or improved by AI
https://theconversation.com/these-jobs-will-thrive-but-others-may-vanish-as-ai-transforms-australias-workforce-262444
These jobs will thrive – but others may vanish – as AI transforms Australia’s workforce | Victoria University
Cited text: The most exposed occupation is data entry clerk, for which the International Labour Organization estimates 70% of the tasks currently done by humans c...Excerpt: data entry clerks most exposed - the International Labour Organization estimates 70% of their current tasks could be done or improved by AI
https://www.vu.edu.au/about-vu/news-events/news/these-jobs-will-thrive-but-others-may-vanish-as-ai-transforms-australias-workforce
AI Jobs In Australia 2025: Demand, Wages, And Roles At Risk
Cited text: For example, Commonwealth Bank of Australia reversed planned AI job cuts after worker pushback, proving humans still influence AI’s workplace role.Excerpt: Commonwealth Bank of Australia reversed planned AI job cuts after worker pushback, proving humans still influence AI's workplace role
https://technew.com.au/ai-jobs-in-australia/
LEAVE A REPLY Cancel reply
Join the conversation
News, deals, games, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.
Register
Member Login
Or continue using
Facebook
Google
Apple
DON'T MISS
Think your extension cord is safe? Some appliances make it a fire risk
28 January 2026
Calls for accountability spark national debate after deadly Sydney attack
28 January 2026
Overspending regret rises as Australians make smarter choices in 2026
28 January 2026
When news becomes the news: ABC’s hack exposes the human cost of cybersecurity
28 January 2026
Load more
- Advertisment -
- Advertisment -