Layoffs have been a major concern in the job market in 2025 as several major companies announced significant job cuts amid the growing use of artificial intelligence. This year alone, AI has led to almost 55,000 layoffs in the US, according to a report by CNBC citing consulting firm Challenger, Gray & Christmas.
In 2025, total job cuts reached 1.17 million, the highest since 2020, when 2.2 million layoffs were announced.
US employers reported 153,000 job cuts in October, and over 71,000 cuts occurred in November, with AI responsible for more than 6,000 of these layoffs, the report said.
The Massachusetts Institute of Technology published a report in November, noting that AI can already replace 11.7% of the US labour market and save up to $1.2 trillion in wages across finance, healthcare, and other professional services.
However, some experts disagree that AI is the primary cause of the significant job cuts. Fabian Stephany, an assistant professor of AI and work at the Oxford Internet Institute, previously told CNBC that it could be just an excuse.
Stephany mentioned that many companies which did well during the pandemic “significantly overhired," and the recent layoffs could simply be a “market clearance”.
“It’s to some extent firing people that for whom there had not been a sustainable long-term perspective and instead of saying ‘we miscalculated this two, three years ago, they can now come to the scapegoating, and that is saying ‘it’s because of AI though,’” he added.
Check out the companies that announced AI-linked layoffs —
Amazon
The tech giant announced its largest-ever layoffs, cutting 14,000 corporate jobs to focus on its “biggest bets”, including AI.
“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... 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,” Beth Galetti, senior vice president of people experience and technology at Amazon, wrote in a blog post.
Microsoft
Microsoft has cut around 15,000 jobs by 2025, with its latest announcement in July signalling 9,000 roles to be eliminated.
In a memo to employees, CEO Satya Nadella emphasised that the company must' reimagine” its mission for a new era' and highlighted the importance of AI for the company's future, the report noted.
“What does empowerment look like in the era of AI? It’s not just about building tools for specific roles or tasks. It’s about building tools that empower everyone to create their own tools. That’s the shift we are driving — from a software factory to an intelligence engine empowering every person and organisation to build whatever they need to achieve,” Nadella was quoted as saying.
Salesforce
In September, CEO Marc Benioff announced that the company had laid off 4,000 customer support staff, utilising AI, the report said.
“I’ve reduced it from 9,000 heads to about 5,000, because I need less heads,” Benioff said in an interview on The Logan Bartlett Show podcast.
Benioff stated over the summer that AI was already managing up to 50% of the company's work.
IBM
CEO Arvind Krishna told the Wall Street Journal earlier this year that AI chatbots had replaced the jobs of a few hundred human resources workers.
Unlike other companies, which cited AI as a reason for job cuts, Krishna, however, noted that the firm had increased hiring in other areas that required more critical thinking, such as software engineering, sales, and marketing. The company announced a 1% reduction in its global workforce in November, which is expected to affect approximately 3,000 employees.
Crowdstrike
Crowdstrike announced in May that it is laying off 5% of its staff, amounting to 500 employees, citing AI as the direct reason for the cuts.
“AI has always been foundational to how we operate,” the report quoted co-founder and CEO George Kurtz's memo. “AI flattens our hiring curve, and helps us innovate from idea to product faster. It streamlines go-to-market, improves customer outcomes, and drives efficiencies across both the front and back office. AI is a force multiplier throughout the business.”
Workday
Human resources platform Workday in February announced it would cut 8.5% of its workforce, roughly 1,750 jobs, as the company increases its investment in AI.
Workday CEO Carl Eschenbach stated that the layoffs were necessary to focus on AI investments and to free up resources.