Some of the largest companies in the U.S. are changing the way they do business as artificial intelligence becomes more prominent. While it could mean that companies function in a more streamlined way, tens of thousands of employees are losing work. 

What's happening?

As reported by CNBC, a number of corporate behemoths have been shedding thousands of corporate jobs over the past year. Companies like Amazon, UPS, Intel, and Microsoft have each laid off at least 9,000 employees in 2025. 

Many of these companies say that increasing global tariffs and decreased revenues are the main reasons behind the mass cuts. But some experts are questioning the timing of these moves. 

As groundbreaking advancements in AI technology continue to be developed, companies are pushing for a leaner and more efficient workforce. However, the link between AI integration and job cuts doesn't appear to be as clear-cut as some may think.

"We spend a lot of time looking carefully at companies that are actually trying to implement AI, and there's very little evidence that it cuts jobs anywhere near like the level that we're talking about. In most cases, it doesn't cut head count at all," said Peter Cappelli, a professor of management at the Wharton School, to CNBC. 

Cappelli continued: "Using AI and introducing it to save jobs turns out to be an enormously complicated and time-consuming exercise. There's still a perception that it's simple and easy and cheap to do, and it's really not."

How does this use of AI affect people?

Many companies are using AI in order to better streamline operations and improve overall efficiency throughout their workforce. This means that AI can do more undesirable, time-consuming tasks, and employees can focus on higher priorities. 

In some cases, AI algorithms can optimize renewable energy use, like wind and solar, by predicting weather patterns and energy demand. This can help balance supply and demand. And it can reduce our reliance on fossil fuels while improving overall grid efficiency. 

At the same time, data centers that power AI require the need to run thousands of servers. It consumes massive amounts of electricity, which often comes from fossil fuel sources. 

That high energy consumption can be a major contributor to an excess of waste and carbon emissions. AI data centers have also been blamed for steadily rising electricity costs across the country. 

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What are experts saying about mass corporate layoffs?

While many have primarily focused on AI integration during the mass layoffs in 2025, experts like Cappelli are looking elsewhere. In addition to ever-changing AI technology, the economic landscape appears to have adjusted future outlooks for dozens of companies. Many of them seek to cut costs anywhere they can.  

According to Cappelli, once mass layoffs start at one company, it can often trigger a chain reaction from other competitors. 

"If it looks like everybody is cutting, then you say, 'They must know something we don't know,'" Cappelli said to CNBC.

This reaction can eventually make its way to the boardroom, where investors are constantly looking for signs of growth and initiative. 

"They want to hear that you're cutting because it looks like you're doing something good. It looks like becoming more efficient," Cappelli added.

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