Amazon:  The IT workforce is changing at a rate never seen before thanks to artificial intelligence. More than 50,000 jobs were eliminated in the United States in 2025 alone, and big businesses like Microsoft and Amazon cited artificial intelligence as a significant contributing reason. These layoffs occur when companies use automation to control expenses, boost productivity, and maintain their competitiveness in the face of economic challenges like rising tariffs and inflation.

However, other experts contend that the reductions are not solely due to AI. According to Fabian Stephany, an assistant professor of AI at the Oxford Internet Institute, many businesses could be utilizing AI as a handy excuse for layoffs after overhiring during the epidemic.

Amazon Fires 14,000 Employees Amid AI Integration This year, Amazon laid off 14,000 employees from its corporate staff. “This generation of artificial intelligence is the most transformative technology we’ve seen since the Internet, and it’s enabling companies to innovate much faster than ever before,” said Senior VP Beth Galetti. We firmly believe that in order to move as fast as possible for our clients and company, we must be more leanly organized, with fewer layers and more ownership.

Microsoft laid off around 15,000 workers over the course of many waves. “Using AI is no longer optional—it’s core to every role and every level,” said Julia Liuson, head of Microsoft’s Developer Division. To promote the use of its Copilot AI services, the business is looking at using AI use metrics in performance evaluations.

Salesforce Simplifies Support by Using AI
In 2025, Salesforce eliminated around 4,000 customer service positions as repetitive duties were replaced by AI technology. According to CEO Marc Benioff, AI is now doing “up to 50% of the work” in support, freeing up staff members to concentrate on more difficult or important tasks.

IBM Uses AI Agents to Replace Hundreds of HR Positions
AI has also been used by IBM to handle repetitive tasks, taking the place of several hundred HR jobs as well as a few marketing and communications positions. The firm is still recruiting for critical thinking-intensive areas like engineering, sales, and advanced technical skills, CEO Arvind Krishna said.

The Wider Effect on the Technology Workforce
AI’s dual function as a labor disruptor and productivity enhancer is shown by its broad adoption in tech organizations. Automation presents difficulties for workers whose jobs may be replaced or changed by technology, even if it may result in considerable cost savings and operational efficiency.

Tech workers need to retrain, adapt, and be ready for a world where automation is a key component of business strategy as AI’s impact grows. In turn, businesses must strike a balance between personnel stability and innovation.