UPDATE: Major companies are rapidly replacing human workers with AI, with significant layoffs just announced. Firms like HP, IBM, and Amazon are leading this urgent shift, signaling a new era in the job market driven by artificial intelligence.
The latest data reveals that 41% of companies globally plan to reduce their workforces in the next five years due to AI advancements. A recent MIT study confirms that AI could replace 11.7% of the U.S. labor market, heightening fears about the future of jobs. As businesses increasingly cite AI as a reason for layoffs, the implications for workers are profound and immediate.
HP has announced plans to cut between 4,000 and 6,000 jobs by 2028, as the company embraces AI-driven productivity measures. In its latest earnings report, HP indicated that these changes aim to save approximately $1 billion. CEO Enrique Lores emphasized that these workforce reductions are part of a broader strategy to enhance customer satisfaction and innovation through AI.
Meanwhile, IBM CEO Arvind Krishna confirmed earlier this year that the company has replaced hundreds of human resources employees with AI. In a recent announcement, IBM stated they would cut thousands of workers in the fourth quarter of 2025, impacting a “single-digit percentage” of their global workforce. Krishna noted that while some roles are disappearing, the company is hiring more employees in AI and quantum computing.
At Amazon, CEO Andy Jassy indicated that AI-driven efficiency gains would shrink the retail giant’s workforce. In October, Amazon announced a layoff of 14,000 jobs, although Jassy claimed the cuts were more about company culture than AI. However, the company’s senior vice president acknowledged the need for a leaner structure in an AI-driven world.
In the tech sector, Salesforce has leveraged AI to reduce its customer support workforce dramatically. CEO Marc Benioff revealed in August that the company cut its support team from 9,000 to about 5,000 employees, citing AI agents’ efficiency in handling sales leads. Salesforce has successfully redeployed many of those affected into other roles within the company.
Klarna is also adapting to the AI wave, with CEO Sebastian Siemiatkowski stating that the firm could function with half its current staff. Klarna’s AI assistant is reportedly handling the workload equivalent to 853 full-time agents, saving the firm an estimated $58 million annually.
Finally, Fiverr CEO Micha Kaufman announced plans to cut around 30% of its workforce, affecting approximately 250 employees. Kaufman has openly stated that AI is “coming for jobs,” and the company will prioritize hiring individuals proficient in AI technology.
As these companies navigate the evolving landscape, the impact on workers is undeniable. The introduction of AI not only threatens existing jobs but also reshapes the skills required for future employment. The World Economic Forum predicts that while some roles will disappear, tech jobs in areas like big data and AI could double by 2030.
Stay tuned as developments continue to unfold in this critical transition toward AI in the workplace.
