The technology industry around the world is going through major changes this week. Amazon, which is one of the biggest online shopping companies in the United States, announced it is cutting 14,000 workers from its offices. The company's leaders said they are doing this to make the company work faster and to spend more money on artificial intelligence. These workers are mostly managers and office workers who help run the company, not the people who work in warehouses packing boxes. This is interesting because many people thought AI would first replace factory workers, but instead it is replacing office workers first.

Many other big companies are also cutting jobs. Target, a large store in the United States, cut about 1,000 jobs this week. Intel, a computer chip company, is cutting about 24,000 workers, which is about 22% of its workers. Salesforce, a computer software company, cut 4,000 people from its customer support team because AI can now answer customer questions. Meta, which owns Facebook, cut 600 workers from its artificial intelligence team. Altogether, the technology industry has cut over 112,000 jobs in 2025.

A big financial company called Goldman Sachs asked other companies about how they are using AI and what it means for their workers. The study found something surprising: only about 11% of companies say they are cutting jobs directly because of AI right now. Instead, about 47% of companies say they are using AI to make workers more productive and to make more money. However, in the technology and media industries, about 31% of companies said they are cutting jobs because of AI. The experts at Goldman Sachs think that many more companies will cut jobs in the next few years.

The experts say certain types of jobs are the most at risk. About 80% of companies expect to cut jobs in customer support because AI chatbots can answer questions automatically. Jobs in administration and information technology are also at risk. The Goldman Sachs experts predict that over the next year, companies will cut about 4% of their workers, and over three years, they might cut 11% of workers. For banks and financial companies, the cuts might be even bigger, with cuts up to 14% over three years.

Experts say this is happening for many reasons. Some companies hired too many workers during the COVID-19 pandemic and are now cutting back. Many companies want to make more money for their owners and shareholders, and they think AI can help them do this. Companies like Amazon are also reducing the number of managers and making their organizations simpler so that AI can help with decisions that managers used to make. This is especially hard for young people who are trying to start their first jobs, because companies are not hiring much right now, and many young people are competing for fewer jobs.