(qlmbusinessnews.com . Thu 30th Oct, 2025) London, UK —
The AI Job Cuts Reality: Insights from Amazon, Salesforce, and Chegg's Workforce Reductions
This week, Amazon's decision to cut thousands of corporate positions has intensified concerns that Artificial Intelligence (AI) is increasingly taking over human jobs. The retail giant is among the latest in a series of US firms attributing layoffs to the advancing capabilities of AI technologies.
Chegg, an online education company, recently announced a workforce reduction of 45% due to the “new realities” brought about by AI. Similarly, Salesforce eliminated 4,000 customer service roles, with its CEO pointing to AI agents as the workforce behind these services now. UPS also reported a significant reduction of 48,000 jobs since the previous year, partly attributing these cuts to advances in machine learning, according to the company's chief executive.
Yet, some experts argue that AI may not be wholly to blame for the job cuts. Martha Gimbel, Executive Director of the Budget Lab at Yale University, urges caution against overinterpreting company statements regarding layoffs as definitive proof of AI's impact on employment. She suggests that company-specific factors often play a significant role in such decisions.
Despite this, certain sectors appear more vulnerable to AI's rise, including recent graduates and data centre workers. A study from the Federal Reserve Bank of St. Louis noted a correlation between job roles with a high prevalence of AI and increased unemployment rates since 2022. However, Morgan Frank, an Assistant Professor at the University of Pittsburgh, found the effects of AI, such as the introduction of ChatGPT, to be limited primarily to the office and administrative support sector.
Amazon's latest layoffs, approximately 14,000 corporate roles, are part of a broader trend in the tech industry, which saw massive hiring sprees before and during the early days of the COVID-19 pandemic. The significant interest rate hikes that coincided with the launch of ChatGPT have also contributed to changing economic conditions. However, some experts, like Gimbel, perceive the current situation as part of a normal economic cycle rather than a crisis induced solely by AI.
Enrico Moretti, a Professor of Economics at the University of California, Berkeley, notes that major tech companies, including Amazon, are particularly affected by AI-driven job cuts due to their dual roles as both consumers and developers of AI technologies. Lawrence Schmidt, an Associate Professor of Finance at the MIT Sloan School of Management, echoes this sentiment, suggesting that Amazon's scale allows it to automate roles more swiftly than its competitors.
As the debate over AI's impact on the job market continues, the differentiation between cyclic job losses and those directly attributable to AI adoption becomes increasingly essential. This distinction is particularly significant as economies prepare for periods of growth and must navigate the complexities of integrating AI technologies while maintaining job security for their populations.
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