Ford CEO makes shocking AI unemployment claim | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Since ChatGPT burst onto the scene, there has been endless chatter about AI coming for white-collar jobs.

Initially, it felt like distant noise, with a few tech layoffs here or there.

Fast-forward to now, though; the AI unemployment threat is real and scaling up quickly.

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Companies are braver with automation, especially with AI tools getting sharper over time.

Hence, entire industries could be bracing for impact, and a recent bombshell from Ford’s CEO suggests the automotive sector might be next.

Ford CEO’s AI unemployment warning puts white-collar jobs in focus.

Image source&colon; Ed Jones/AFP via Getty Images

The auto sector faces a new AI layoff reality

Over the past year, automakers have axed thousands of white-collar jobs in layering AI across every corner of their operations.

Last August, General Motors cut over 1,000 salaried software and service positions. The company deemed it a push to streamline operations, with AI tools reshaping how it builds and sells cars.

GM was back at it by April this year, laying off another 200 workers at its all-electric Factory Zero plant in Detroit.

Tesla is another auto giant that’s swung the axe on jobs.

Early this year, the EV behemoth shed thousands of jobs while watching key executives head for the exits in a pivot to full self-driving tech. Around the same time, Tesla poached a former Cruise executive to run its growing AI division.

Also in April, Volvo Group North America said it would cut up to 800 U.S. jobs across three sites. It blamed weak demand but pointed to its push to automate production faster.

Hence, AI is actively reshaping automation with 24/7 uptime and leaner supply chains, cutting headcounts to squeeze costs.

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And it’s not just North America seeing rapid shifts driven by AI.

German auto parts giant ZF looks to cut 14,000 jobs by 2028, while Volkswagen’s software arm Cariad could shed 1,600 staff as it races to digitize.

Looking ahead, managing the social fallout of this AI-first era remains a big test for automakers and industry players alike.

Ford boss warns AI unemployment could wipe out half of U.S. office jobs

Ford (F) CEO Jim Farley isn’t mincing words about AI’s impact on the American white-collar workforce.

“Artificial intelligence is going to replace literally half of all white-collar workers in the U.S.,” Farley told a crowd at a recent event, calling out what he sees as an “asymmetric impact” on the economy.

He also feels some areas will get a boost, while others will suffer, with AI leaving many white-collar employees out in the cold.

It’s important to note that Farley isn’t the only one who has such comments. Amazon CEO Andy Jassy recently told staffers that AI-driven efficiency gains will likely shrink the company’s workforce in the coming years.

Dario Amodei, CEO of Anthropic, recently told Axios that AI might obliterate 50% of all entry-level white-collar jobs and take unemployment rates to 10% to 20% in as little as five years.

Meta CEO Mark Zuckerberg echoes the same sentiment. In April, he predicted that AI could write most of Meta’s code in just 12–18 months.

Fiverr CEO Micha Kaufman also put it bluntly, saying, “It does not matter if you are a programmer, designer, product manager, data scientist, lawyer, customer support rep, salesperson, or a finance person — AI is coming for you.”

These forecasts may sound extreme, and plenty of folks disagree, but the message is loud and clear.

Corporate America’s top brass sees a massive disruption coming, and those riding the AI wave will benefit the most.