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AI Job Cuts: 8 Major Companies Reducing Staff as Automation Expands

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Dubai: Artificial intelligence is no longer just a future technology. It is already changing how large companies operate, and in many cases, it is reducing the number of human workers.

Several global firms have confirmed job cuts in recent years while expanding the use of AI tools to handle tasks such as customer service, content creation, internal operations, and administrative work.

Technology leaders have openly said that many entry-level white-collar jobs could disappear in the coming years. Reports from global economic bodies also show that roles like customer support, clerical work, and sales assistance are among the most vulnerable.

Here are eight major companies that have reduced staff while increasing automation.

1. Klarna

The Swedish financial technology company reduced its workforce from about 7,000 employees in 2022 to around 3,000 today.

The company introduced an AI assistant that now manages customer queries and refund processing. Leadership has said the company expects to operate with fewer employees in the future.

2. UPS

In early 2025, UPS announced plans to cut 20,000 jobs.

The company said automation and machine learning tools are helping complete tasks such as pricing proposals and operational planning, reducing the need for large teams.

3. Duolingo

The language-learning platform declared itself an “AI-first” company in 2025.

It ended contracts with about 10% of its contractors after confirming that AI systems could manage many translation and content tasks.

4. HP

HP confirmed plans to cut between 4,000 and 6,000 jobs globally by 2028.

The company linked the move to AI integration in product development, customer service, and internal operations.

5. IBM

IBM has replaced several human resource roles with AI systems in recent years.

Company leadership confirmed that thousands of back-office positions have been reduced as automation expanded.

6. Amazon

Amazon announced 16,000 job cuts in January 2026, following earlier reductions in 2025.

The company said it is simplifying operations and increasing efficiency as it rolls out more AI tools.

7. Salesforce

Salesforce reduced its customer support workforce from about 9,000 to 5,000 employees.

AI agents now handle many support and sales-related tasks that were previously done by humans.

8. Dropbox

Dropbox reduced its workforce by about 20% in 2024.

The company said it is restructuring to focus more on AI-driven development and leaner operations.

What This Means for Workers

Experts warn that entry-level white-collar jobs are at the highest risk. These include administrative assistants, customer service representatives, and junior office roles.

While AI is also creating new technical positions, companies are clearly restructuring around automation. Many businesses say AI improves speed, reduces costs, and increases productivity.

The long-term impact on the job market remains uncertain, but one thing is clear: artificial intelligence is already changing the way companies hire and operate.

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