Takes Over: Thousands of Jobs Cut During Economic Uncertainty
By Julia Chruszcz | International | May 15, 2023
Cover Illustration: Computer showing ChatGPT, 2023. Emiliano Vittoriosi / Unsplash
International reporter Julia Chruszcz elucidates the challenge of AI developments to the job market in the media industry.
Huge waves of layoffs have been affecting thousands working in media industries. Buzzfeed has let go of 180 employees and shut down its Buzzfeed News division, while Paper Magazine has fired its entire editorial staff. Vice Media has announced that over 100 staff members will be let go and its Vice World News brand will be shut down. Insider Inc (previously Business Insider) has announced that 10% of its staff will be cut, while Disney’s broadcast news division ABC News has revealed it will lay off 50 people. These recent layoffs have rocked the media industry in 2023, owing to economic volatility and uncertainty as well as the growth in Artificial Intelligence (AI)-related tools replacing human input.
The recent dismissals are the first major slate of cuts since the beginning of COVID-19, when companies were laying off workers due to the economic unpredictability of the pandemic. However, inflation rose to new heights globally this year, and media companies have had to adapt by letting go of hundreds of employees and closing down divisions to stay afloat.
“While incredibly difficult, implementing these efficiencies and responding decisively to the ongoing macroeconomic volatility will continue to propel Gannett’s future,” a Gannett spokesperson told the Poynter Institute.
Companies such as Buzzfeed and CNET have turned to tech to innovate their content production, forced by the sensitive economic conditions causing layoffs. Buzzfeed’s famous “listicles” and quizzes will now be created using AI, the news of which resulted in its stock to double. CNET has also begun using AI to create around 75 personal finance articles, but has impeded trials due to factual errors. These moves are only few of many highlighting the excitement following the public launch of ChatGPT, with reports of Microsoft investing 10 billion dollars in the tool.
The media industry has experienced huge losses over the last decade, with newsroom employment falling 26% since 2008. The tech industry has also been heavily impacted by recent economic crises, with Meta, Amazon and Microsoft dismissing hundreds of their employees, striving to cut down on costs.
Some laid-off tech employees have turned to social media to voice their concerns: “I moved to Singapore with this company and built a life here.” says @meggiemanifest on TikTok. “I’ve worked for Amazon for eight years and I’ve been promoted a ton of times, I got promoted twice last year and had an amazing review just a month ago” says another TikToker, @sohltrain.
As companies struggle to operate amidst economic instability, the wave of layoffs is a stark reminder of the challenges facing the media industry. While the use of AI may help reduce costs and is an exciting venture for many tech companies and enthusiasts, the overall outlook of the effects this has on media and tech employees seems rather bleak.
The media industry has experienced huge losses over the last decade, with newsroom employment falling 26% since 2008. The tech industry has also been heavily impacted by recent economic crises, with Meta, Amazon and Microsoft dismissing hundreds of their employees, striving to cut down on costs.
Julia Chruszcz is a university student in Amsterdam. The views expressed here are not necessarily those of The Amsterdammer.
