Technology & Software Companies That Have Replaced Workers with AI
Google
Google kicked off 2024 by announcing not one, but two rounds of layoffs. Google CEO Sundar Pichai didn’t explicitly announce these jobs would be replaced with AI technology outright. However, the job-cutting spree, which largely affected workers from the company ad division, coincided with a heavy deployment of AI across customer care and ad sales processes, as well as a company-wide effort to use the tech to improve “operational efficiency”.
Microsoft
The tech giant announced a huge round of layoffs in May, with about 6,000 employees thought to have been affected. Reportedly, the majority of those were programmers. While it has not explicitly confirmed that this is the case, these layoffs come off the back of comments made by CEO Satya Nadella in April, in which he confirmed that around 30% of the company’s code was now written by AI.
Salesforce
In 2024, US software company Salesforce fired 700 workers – equivalent to approximately 1% of its global workforce. This is in addition to similar cuts that saw the company reduce its personnel by 10% last year. Similarly to Google, Salesforce didn’t announce that these job losses were directly linked to AI. But with Salesforce’s hiring budget decreasing as it pumps more money into artificial intelligence, some argue that it’s likely that many of these vacancies will be filled by automated labor.
[UPDATE 09/02/25] In a podcast interview, Salesforce CEO Marc Benioff stated that the company was able to reduce its customer support headcount from 9,000 to 5,000, thanks to the implementation of agentic AI agents. According to Benioff, the company has been unable to call back more than 100 million leaders over the past 26 years, due to a lack of staff, but claims that now, with AI, the company is able to follow up every call.
Atlassian
Improved productivity inherently comes with layoffs. At least, that’s according to the cofounder of Atlassian, the company behind the popular Jira project tracking software. He pointed out — in an interview with the Sydney Morning Herald — that, “If we make call center staff more productive, people aren’t going to call more, and we’ll probably need less call center staff.”
E-commerce & Retail Companies That Have Replaced Workers with AI
Amazon
In a company memo posted publicly by CEO Andy Jassy, Amazon admitted that the company plans to use AI to “reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.” The memo notes that the tech can be used to “easily create new product detail pages or get advice on how to be even more effective as a seller,” as well as other functions in advertising, Amazon Web Services (AWS), and across our internal operations.
In October 2025, Amazon announced plans to cut a huge 14,000 corporate jobs. In the note to staff about the cuts, Beth Galetti, Senior Vice President of People Experience and Technology, alluded to the benefits of AI to allow the company to work more efficiently, stating “This generation of AI is the most transformative technology we’ve seen since the Internet, and it’s enabling companies to innovate much faster than ever before (in existing market segments and altogether new ones). We’re convinced that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business.”
Ikea
In June 2023, the beloved Swedish furniture retailer Ikea announced that it would be phasing out call center work and using an AI bot called Billie to answer queries instead. However, unlike most companies on this list, Ikea is planning to upskill affected employees and has already begun training thousands of call center workers to become interior design advisors. Instead of using AI to the detriment of workers, global people manager at Ingka Group Ulrika Biesert believes its use will actually lead to the creation of new jobs at Ikea, while opening up development opportunities for existing workers.
Dukaan
Unlike Google, Bangalore-based ecommerce company Dukaan took a less subtle approach to AI job replacements. In July 2023, company CEO Summit Shah replaced 90% of customer support staff with a chatbot that was developed in-house, before bragging about the decision on social media platform X. In the post, Shah defended the actions as “tough but necessary”, as the chatbot helped the company cut the cost of its customer support function by 85%, and drastically reduce customer wait times.
Best Buy
In 2023, Best Buy made a significant number of job cuts, as part of a wider restructuring plan to “stabilize the company after months of declining sales,” as well as to “make sure we are providing the optimal experience for customers where they want to shop.” Shortly after the announcement about layoffs, it announced a new AI venture, created in collaboration with Google Cloud and Accenture.
Education Technology Companies That Have Replaced Workers with AI
Chegg
The online education company is planning on laying off around 45% of its workforce, amounting to 388 employees. This is due to the “new realities” of AI and diminished traffic from internet search, which has resulted in less revenue. These layoffs come after Chegg laid off around 22% of its workforce in May, citing the increasing adoption of AI.
Duolingo
In January 2024, gamified language learning app Duolingo announced it would be offboarding off 10% of its contractor workforce, as the company pivoted to AI to translate content. Since these workers weren’t permanent employees, no worker was officially laid off as part of this process. However, a spokesperson from Duolingo explained that part of their decision to terminate these contracts could be “attributed to AI”, sending a very clear signal that the company is happy to switch out human labor for AI.
The language tuition app is set to replace existing contract workers with AI. The decision is part of a commitment to becoming an “AI-first” company, which comprises several different measures. The company has reassured staff that it will “remain a company that cares deeply about its employees.”
Turnitin
Turnitin is an AI detection platform, so if you thought working with AI might be a safe career prospect, think again. In 2023, Turnitin CEO, Chris Caren, stated that the company would be looking to reduce headcount, during a discussion about AI in the workplace. Caren’s vision was that future employees could be hired out of high school rather than needing multiple years experience, and that the increase in AI efficiency would also reduce the total headcount needed. At the end of 2023, Turnitin laid off 15 people. It’s a small impact on a company with 900 employees, but Caren’s original vision was that in 18 months he would be able to reduce the company’s headcount by 20%, meaning those larger redundancies could still be happening.
Fiverr
In a letter to employees shared by CEO Micha Kaufman, online marketplace Fiverr announced they would be laying off 250 workers, which amounts to about 30% of its workforce. The company have done so in order to adhere to an ‘AI-First’ mindset, that would see the technology become the core of its operations. As a result of the layoffs, Kaufman believes Fiverr will become “leaner” and “faster”, and said its AI bid will lead to “substantially greater productivity, and far fewer management layers.”
Recruitment Companies That Have Replaced Workers with AI
Indeed & Glassdoor (Recruit Holdings)
Indeed and Glassdoor are both owned by the same parent company, Recruit Holdings, which has decided to layoff upwards of 1,300 employees — or 6% of its workforce — given the changing tides of job search sites in response to AI. In the memo to employees, the CEO said that it aims to “simplify hiring with using AI and technology and data to reduce manual work.”
Logistics Companies That Have Replaced Workers with AI
UPS
Earlier this year, the global shipping and logistics company announced it’d be laying off 20,000 workers, one of the biggest workforce reductions in its history. CEO Carol Tomé explained that technologies such as machine learning have enabled these kinds of cuts, due to the automating of certain tasks, according to Forbes.
Finance Companies That Have Replaced Workers with AI
Klarna
Unlike some of the other companies on this list, Klarna is shouting loud and proud about replacing workers with AI. The company announced this year that it had employed AI tech that it says can do the job of 700 customer service workers. However, Klarna isn’t technically cutting jobs, as its argument is that it outsources its customer service roles to agencies – therefore, Klarna employees are safe from AI. For now.
Media & Marketing Companies That Have Replaced Workers with AI
BlueFocus
Last April, Chinese marketing agency BlueFocus decided to end the contracts of its human content writers and designers “fully and indefinitely”, in favor of generative AI. While BlueFocus didn’t state publicly that it would be using AI to replace staff, the action was taken just two days after the company was granted Microsoft’s Azure OpenAI service license, and just a month after they partnered with Baidu ERNIE Bot to build a full-scale AI marketing service system, leading many spectators to put two and two together.
MSN
US web portal and creators of the Frutiger Aero messaging platform, MSN, decided to ditch workers for AI earlier than lots of other companies on this list. In 2020, MSN sacked dozens of journalists responsible for writing news stories displayed on the company’s homepage and has since been using AI software to create the content. According to the media company that employed the staff, PA Media, these actions were in response to financial difficulties the firm was facing, but weren’t a result of the pandemic.