Why Big Tech Companies Like Amazon Are Laying Off Thousands of Employees

Amazon’s announcement of thousands of job cuts has reignited concerns about the impact of artificial intelligence (AI) and its use in replacing workers. This week, the tech giant joined a growing number of U.S. companies that have cited AI technology as a reason for their layoff plans. Chegg, the online education company, cited the “new realities” of AI when it announced on Monday that it would cut its staff by 45%. Salesforce announced last month that it would cut 4,000 customer service jobs. The company’s CEO stated that AI agents were performing the tasks. UPS announced on Tuesday that it has eliminated 48,000 jobs since last year, an adjustment that the company’s CEO attributed in part to artificial intelligence. However, some doubt that AI is solely to blame and have expressed skepticism about whether recent layoffs at well-known companies are truly a result of technology's impact on employment.