According to today's news, layoffs in March reached about 60,000, a 25% increase from the previous month.

This could be seen as just a part of the economic cycle... but the problem is that about 25% of these layoffs are related to AI restructuring.

If you visit downtown LA or Santa Monica, you'll notice that the startup atmosphere has changed dramatically.

In the past, the focus was on hiring people, but now the basic question is, "Have you automated?"

To be honest, the atmosphere feels more natural for reductions than for hiring.

Last year, layoffs at this time exceeded 270,000. That was significantly higher than now.

However, the reason it feels more unstable now compared to then is simple. Last year, it was an economic issue, but this year, it's a structural issue.

This difference is significant. Economic layoffs can return, but structural layoffs do not.

The industries that are laying off the most people have shifted from government, retail, and tech last year to tech, transportation, and healthcare this year.

In simple terms, you can see it as the "order in which AI has started to take over."

Starting with Tech, Now Spreading to Other Industries

Companies like Meta and Oracle reducing their workforce is already familiar.

However, the point is that large companies like Dell are making large-scale moves, significantly increasing the numbers.

This is not just cost-cutting; it's a shift in direction. Money is being moved from people to AI.

And what's even more alarming is the transportation and logistics sector, where layoffs have increased by over 700%.

This feels like it's moving from the testing phase to actual implementation.

Healthcare is also starting to get involved. AI is at a stage where it can "reduce the number of people, even if it cannot completely replace them."

Everything Looks Fine, Which Makes It More Dangerous

There is a point where the market is mistaken. The number of unemployment claims is low.

On the surface, the job market seems fine. This is why people are not feeling anxious, but in my view, this is the most dangerous period.

Everything looks fine on the outside, but the structure is changing inside.

You can feel it in LA as well. Companies are not completely avoiding hiring people; they are changing their criteria.

In the past, they hired "people who could do the job," but now they only hire "people who can work with AI."

So, the message is to keep improving your skills. It sounds good, but realistically, this is the situation. Not everyone can improve.

Some will improve, and some will be pushed out.

Now, the required employees are those who can handle systems. But this is not something just anyone can do.

Conclusion: AI Does Not Cut Jobs All at Once

AI does not eliminate jobs overnight. Instead, it slowly and quietly reduces them.

This is why the impact is felt later. It's not that people are suddenly laid off; it's that, at some point, they find themselves unnecessary in the structure.

In LA, it is only a matter of time before the job market flips.

The current situation can be described as AI not replacing people, but rather sorting out those who are no longer needed.