Jensen Huang's Bold Take on AI and Employment
Jensen Huang, the CEO of Nvidia (NVDA), has made it clear that he doesn’t believe artificial intelligence is reducing jobs. In a recent interview with Bloomberg, he dismissed the idea as "complete nonsense." His argument centers around the notion that AI isn't making software engineers redundant; instead, it's increasing their productivity. According to Huang, each engineer can now produce more work with the help of AI, which could lead to an increase in demand for engineering roles.
Huang’s most striking point is his claim about the potential productivity boost from AI. He mentioned that a single AI-enabled engineer could generate "$9 trillion worth of productive work," suggesting that the ceiling for output is rising. This implies that the demand for engineering work could expand significantly if workers are more efficient.
However, this theoretical optimism doesn’t seem to align with the real-world anxieties many workers face. The fear of job loss isn't just an abstract concern—it's fueled by actual headlines and decisions from major companies. These organizations are increasingly using AI as a reason for reducing their workforce.
Companies Embracing AI for Workforce Reductions
IBM (IBM) announced a hiring pause for thousands of back-office roles that could be replaced by AI over time. Dropbox (DBX) cut about 500 employees, stating that it needed to stay at the forefront of the AI era. Duolingo (DUOL) reduced its contractor workforce by roughly 10% as it leaned on AI for content production and translation. Chegg (CHGG), affected by students turning to AI tools, also announced significant workforce reductions to adapt to the new realities of AI.
The trend continues to grow. In February, Block (XYZ) laid off 4,000 employees, directly citing AI and intelligence tools as a reason for the move. Shortly after, Block’s founder, Dorsey, took to X to express his belief that most companies will follow suit within the next year. He stated, “I think most companies are late. Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes.”
Salesforce (CRM) CEO Marc Benioff mentioned that the company reduced its customer support headcount from about 9,000 to 5,000 because AI agents meant fewer people were needed. Amazon (AMZN) CEO Andy Jassy told employees that as the company rolls out more generative AI and agents, it expects to reduce its corporate workforce over the next few years.
Rising AI-Related Job Cuts
According to Challenger, Gray & Christmas, AI has become a growing reason for job cuts. The firm tracked 54,836 announced layoffs in 2025 and 87,714 cuts through May 2026. Goldman Sachs (GS) estimates that approximately 11,000 jobs per month are being lost due to AI.
Even if Huang is correct that AI can create more work in the long run, the immediate pressure on workers is undeniable. Many employers are already using AI as part of their rationale for reducing staff.
Market Reactions and Incentives
What’s more concerning is that after these companies made these announcements, markets largely rewarded them. Many saw substantial stock gains, giving companies a direct incentive to continue this trend. For example, Block’s stock soared as much as 24%, largely due to the announcement about AI-related layoffs.
On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Disclosure Policy here.
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