The AI jobs crisis is no longer a looming threat—it may already be reshaping the modern workforce. Language learning platform Duolingo announced its latest move to become an “AI-first” company by replacing a large portion of its contractor workforce with artificial intelligence, raising fresh alarms about the growing displacement of creative and entry-level professionals.
Journalist Brian Merchant highlighted the development as a signal that the AI-driven employment disruption is underway. In interviews with former Duolingo contractors, it was revealed that this policy shift isn’t entirely new. The company had already downsized approximately 10% of its contract staff in late 2023, with another wave of layoffs following in October 2024. These cuts primarily impacted translators and writers, both groups ultimately replaced by AI systems.
Merchant also pointed to findings from The Atlantic that uncovered a troubling spike in joblessness among recent college graduates. One suggested cause: AI technologies are being used to automate the kinds of entry-level positions these graduates once filled. As businesses increase investment in AI, they may be doing so at the expense of traditional hiring budgets.
At the heart of the AI jobs crisis, according to Merchant, are deliberate decisions by corporate leadership aiming to slash labor costs and streamline organizational control. This shift is becoming visible through reduced demand for freelance talent in the creative industries, shrinking incomes for independent writers and artists, and a broader trend toward downsizing human teams in favor of automation.
“This isn’t some sci-fi scenario with robots taking over in dramatic fashion,” Merchant remarked. “It’s a wave of executive-level choices under the guise of an ‘AI-first strategy’—like Duolingo quietly letting go of thousands while signaling innovation.”
The ripple effects of this AI jobs crisis could redefine the future of work across multiple industries. As more companies adopt AI-centric models, the balance between innovation and employment stability will continue to generate intense public and policy scrutiny.