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AI Agents and Automation: A Growing Threat to Jobs

by Rachel Kim – Technology Editor

Agentic AI and the Future of Work: Navigating Technological Promise and the Risk of Increased Automation

The rise of agentic Artificial Intelligence (AI) is rapidly reshaping the landscape of work, prompting both optimistic forecasts and concerns about accelerating automation and job displacement.While still in its early stages, the perceived potential of this technology is already influencing business decisions and workforce structures, leading to demonstrable job losses across multiple sectors in 2025.

Several companies have already undertaken significant workforce reductions linked to the implementation of AI-driven systems. United Parcel service (UPS) experienced the elimination of 20,000 jobs and the closure of 73 facilities globally in 2025 following the deployment of new systems designed to optimize delivery routes, implement dynamic pricing, and manage loads within its logistics facilities.

Salesforce CEO marc Benioff confirmed a reduction of 4,000 customer service positions, shrinking the team from 9,000 to approximately 5,000, after integrating AI agents that now handle roughly 50 per cent of customer interactions. Autodesk,a San Francisco-based software company,announced layoffs impacting nearly 1,350 jobs – around 9 per cent of its global workforce – as part of a restructuring focused on strengthening its AI-driven products and digital platforms.

The impact extends beyond the tech sector. Tata Consultancy Services (TCS), an Indian firm, announced the elimination of 12,261 jobs in July, its largest workforce reduction to date, attributing the cuts partly to disruptions caused by artificial intelligence and automation, alongside shifts in technology service delivery models.

Amazon, operating distribution centres internationally including in Brazil, has seen an estimated 10 per cent reduction in staffing between 2022 and 2025 at its most highly automated facilities, driven by the implementation of intelligent robots and algorithmic systems for sorting and inventory management.

In the united Kingdom, Ocado cut 500 jobs across its technology and finance divisions following the introduction of AI systems at its automated warehouses.

Despite the limitations of current agentic AI capabilities, the prevailing narrative surrounding its potential is already impacting investment and organizational strategies. As one observation notes, “even though it has yet to fully materialise, the future of work is already being shaped as though it had.”

This situation underscores the need for a proactive and critical response from trade unions, social movements, governments, and multilateral institutions. rather than accepting a deterministic view of technological progress, these entities must critically assess the claims made by Big Tech regarding AI agents to understand the extent to which these claims are driven by speculative investment. Simultaneously, it remains crucial to acknowledge and address the tangible and accelerating risks posed by automation to the global workforce.

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