Push for Worker Protections as AI Layoffs Accelerate

In the Philippines and beyond, a growing number of workers are facing an uncomfortable reality: artificial intelligence is taking over jobs, and layoffs are following. Now, lawmakers are pushing for new systems to shield employees from being replaced by machines, a move that could reshape how families and communities weather the AI storm.

What Happened

This week, Philippine lawmakers announced a push for legislation designed to protect workers from layoffs caused by artificial intelligence. The proposal comes as companies in sectors like business process outsourcing (BPO), manufacturing, and retail are increasingly turning to AI to automate tasks that once required human hands. According to the IT and Business Process Association of the Philippines (IBPAP), more than 1.3 million Filipinos work in the BPO sector—an industry now under threat as AI-powered chatbots and automation tools become more capable and cost-effective.

The proposed system would require companies to notify and support employees at risk of losing their jobs to AI. Lawmakers are discussing mandatory retraining programs, extended severance packages, and even a national fund to help displaced workers transition to new roles. While details are still being hammered out, the urgency is clear: a recent IBPAP report estimates that up to 50,000 jobs in the BPO sector alone could be lost to AI by 2028 if no action is taken.

How This Affects Everyday People

For workers, the threat of AI-driven layoffs isn’t just a distant worry—it’s a daily concern. Take Maria, a call center agent in Manila, who has watched as her company rolled out AI chatbots to handle routine customer inquiries. "Last year, three of my friends were let go because their tasks were automated," she says. "I’m scared I could be next." Maria’s story is echoed by thousands of workers in similar roles, not just in the Philippines but worldwide.

Families who rely on a single breadwinner in these vulnerable sectors face mounting anxiety. Parents worry about putting food on the table and paying for their children’s education if they lose their jobs. Students, too, are questioning whether the careers they’re studying for will even exist by the time they graduate. The uncertainty is real—especially for those without the resources to quickly retrain or relocate for new opportunities.

Communities built around factories or call centers are at risk of economic decline if mass layoffs hit. As more companies automate, the ripple effects include fewer local purchases, declining school enrollments, and even increased migration as people move in search of work. For many, the question isn’t just "Will AI replace my job?" but "How will my family survive if it does?"

The Bigger Picture

The Philippines isn’t alone in grappling with the fallout from AI-driven automation. In the United States, the Worker Adjustment and Retraining Notification (WARN) Act requires large employers to give 60 days’ notice before mass layoffs, but it doesn’t specifically address AI-related job loss. In the European Union, discussions are underway about updating labor laws to reflect the impact of automation, with proposals for reskilling funds and stricter layoff notifications.

Meanwhile, global giants like IBM and BT Group have announced plans to cut thousands of jobs as they adopt AI to streamline operations. IBM’s CEO, Arvind Krishna, said in 2023 that up to 7,800 jobs could be replaced by AI and automation in the coming years. The trend is clear: as companies chase cost savings, workers are left to pick up the pieces. For a closer look at how this is playing out, see our AI layoffs tracker.

Efforts to "AI-proof" the workforce are also gaining traction. Governments and advocacy groups are pushing for more investment in education and training for jobs that AI can’t easily replace, such as healthcare, skilled trades, and creative roles. But retraining takes time and resources—luxuries many displaced workers don’t have in the immediate aftermath of a layoff. For more on which careers are less vulnerable, check out our guide to jobs AI can't replace.

What You Can Do

• Stay informed about your rights: Learn about proposed laws and existing protections in your country. If you’re in the Philippines, follow updates on the new worker protection bill and know what support you’re entitled to if you lose your job to AI.
• Invest in skills that AI struggles to replicate: Jobs involving empathy, critical thinking, or hands-on work—like nursing, teaching, or skilled trades—are less likely to be automated soon. Consider training or upskilling in these areas.
• Join or support worker advocacy groups: Unions and labor organizations are pushing for better protections against AI layoffs. Being part of a collective can amplify your voice and help secure stronger rights.
• Plan for financial resilience: If you work in a sector vulnerable to automation, start building an emergency fund and explore side gigs or part-time work that could cushion the blow of sudden job loss.
• Talk to your employer: Ask about their plans for AI adoption and whether retraining or redeployment programs will be available. Being proactive can help you prepare for changes before they happen.

The Bottom Line

The push for systems to shield workers from AI-driven layoffs is a sign that governments are finally taking the risks of automation seriously. But laws alone won’t solve the problem overnight. Everyday people—workers, parents, and students—must stay alert, adapt, and demand a seat at the table as the future of work is rewritten by artificial intelligence.