Major Companies Announce Job Cuts as AI Replaces Human Roles

BREAKING: Major corporations including HP, IBM, and Amazon are set to replace thousands of human employees with AI technology, marking a significant shift in the workforce landscape. This urgent development reflects growing concerns that AI is not just enhancing productivity but actively displacing jobs.

In a recent earnings report, HP announced plans to eliminate between 4,000 and 6,000 jobs by 2028, attributing these cuts to AI-driven initiatives aimed at saving $1 billion. This decision highlights the company’s strategy to streamline operations and enhance customer satisfaction through AI adoption.

Meanwhile, IBM CEO Arvind Krishna confirmed that hundreds of human resources positions have already been replaced by AI. The company plans further reductions, affecting a “single-digit percentage” of its global workforce in Q4 2025. Krishna indicated that while AI is displacing some roles, it is also creating demand for new talent in programming and quantum technologies.

At Amazon, CEO Andy Jassy acknowledged that AI efficiency gains would lead to a smaller workforce, although he emphasized that the recent layoffs of 14,000 workers were not primarily driven by AI. Jassy stated that the company is focused on cultivating a culture of innovation, which he believes is essential in the age of transformative AI.

In a notable shift, Salesforce has utilized AI agents in its customer support division, allowing the company to reduce its workforce from 9,000 to 5,000 employees. CEO Marc Benioff highlighted that this organizational transformation has enabled the company to streamline operations significantly.

Klarna CEO Sebastian Siemiatkowski revealed that the company’s AI assistant now manages the workload equivalent to 853 full-time agents, saving approximately $58 million annually. While Klarna is still hiring for certain roles, the CEO stated that the workforce could effectively operate with half of its current size.

Additionally, Fiverr CEO Micha Kaufman announced a drastic workforce reduction of 30%, affecting around 250 employees. He emphasized the necessity of becoming a leaner, “AI-first company” as the industry evolves.

The impact of these layoffs is profound, as a recent study from MIT indicates that AI could replace 11.7% of the U.S. labor market. The findings underscore a growing urgency for workers to adapt to an evolving job market where AI plays an increasingly dominant role.

As these companies pivot to integrate AI, the future of work remains uncertain. The World Economic Forum predicts that 41% of companies globally will reduce their workforces over the next five years due to AI, while tech jobs in AI and data analytics are expected to double by 2030.

This urgent shift in corporate strategy raises critical questions about the balance between technological advancement and employment stability. As AI continues to permeate various sectors, workers and policymakers alike must navigate the implications of these changes.

For ongoing updates, stay tuned as we track further developments in the intersection of AI and the workforce.