H2 2024: Government and Services Sectors Feel the Impact

The second half of 2024 broadened AI layoffs beyond tech, with government agencies, telecommunications firms, and professional services joining the wave.

Second Half 2024: Beyond Tech

The back half of 2024 saw AI-attributed layoffs spread beyond technology companies into government, professional services, and traditional industries.

Government Adopts AI — and Cuts Staff

UK Civil Service announced plans to cut 10,000 roles through AI and automation
Canada revealed plans affecting up to 40,000 public service positions through AI-enabled restructuring
IRS and other US federal agencies began AI integration programs with workforce implications

Telecommunications Deep Cuts

Ericsson cut 1,600 positions in Sweden alone, citing AI-optimized operations
Vodafone continued its multi-year AI restructuring
Lumen Technologies streamlined through AI-driven network management

Professional Services

Accenture cut over 10,000 roles while simultaneously expanding its AI practice
Baker McKenzie reduced support staff as AI legal tools gained adoption

The Quiet Displacement

Perhaps the most significant trend in H2 2024 was what didn't make headlines: companies simply stopped backfilling departed roles, using AI to absorb the work. This "soft attrition" is nearly invisible in layoff statistics but represents a significant shift in hiring patterns, particularly for entry-level and junior positions.

Year-End Tally

By December 2024, our tracker estimated over 150,000 cumulative AI-attributed job cuts since tracking began, with the true number likely higher due to soft attrition and unreported contractor terminations.