Large technology companies are cutting thousands of jobs this week, and experts say artificial intelligence is a major reason. Amazon announced it will let go of about 14,000 workers from its office jobs as it invests more in AI technology. The company said AI can now do work that middle managers used to do, like writing reports and making decisions. This is important because it shows that AI is starting to replace white-collar jobs—the kind of jobs people usually think are safe from automation.

This is not just Amazon. Many other big companies are also cutting jobs this week. Target is cutting about 1,000 jobs, and companies like Meta, Google, and Intel are also making major layoffs. Some companies say they are cutting jobs because business is slower, but many are pointing to AI as a major reason. For example, software company Salesforce cut 4,000 customer service jobs because AI can now handle half of customer conversations without humans.

The number of job cuts in the United States is very high in 2025. According to a report released in early October, employers announced 946,000 job cuts so far this year—the highest number since 2020. The report said that over 17,000 jobs were cut specifically because of AI, with another 20,000 tied to other kinds of automation.

The workers being hurt most are entry-level employees and people trying to move up in their careers. CEO Andy Jassy at Amazon said the company will need "fewer people doing some of the jobs being done today." This means younger workers looking for their first jobs or trying to get promoted may have fewer opportunities. The Federal Reserve warned that hiring has slowed down, especially for early-career employees.

Some experts think this is just the beginning of how AI will change jobs. One analyst group estimates that by 2026, one in five organizations will use AI to eliminate half of their management layers. However, other experts say we should be careful about blaming AI too much. Some say the economy is just slowing down and companies are trying to save money for other reasons.