Sam Altman Slows OpenAI Hiring to Avoid AI-Driven Layoffs

OpenAI CEO Sam Altman announced that the company will dramatically slow its recruitment pace, citing the ability of AI tools to help the organization achieve more with fewer people. During a live-streamed town hall for developers, Altman clarified that the company is not implementing a full hiring freeze nor attempting to replace human workers entirely.

Altman cautioned other companies against aggressive over-hiring that leads to uncomfortable layoffs once automation reduces staffing needs, advocating instead for a steady and cautious growth strategy. These decisions come amid broader U.S. labor trends showing unemployment at its highest levels since 2021 and a significant drop in job openings from 2022 peaks.

In addition to the staffing shift, OpenAI plans to introduce advertisements on ChatGPT. The company intends to charge advertisers approximately $60 per 1,000 impressions while maintaining the privacy of user conversations.