Artificial Intelligence Linked to Nearly 55,000 U.S. Layoffs in 2025, Data Show

Artificial intelligence has emerged as a major justification for workforce reductions in 2025, with U.S. employers attributing almost 55,000 job cuts to the technology, according to consulting firm Challenger, Gray & Christmas. The figure accounts for a significant share of the 1.17 million total layoffs announced nationwide this year, the highest annual tally since 2020, when 2.2 million positions were eliminated during the height of the COVID-19 pandemic.

Monthly disclosures underline the trend. In October, companies announced 153,000 planned layoffs, followed by more than 71,000 additional cuts in November. Artificial intelligence was cited for over 6,000 of the November reductions, underscoring how frequently the technology is being referenced in restructuring plans.

Employers are contending with persistent inflation, higher tariffs and other cost pressures. In that context, AI is being presented as an immediate tool for efficiency. A study released in November by the Massachusetts Institute of Technology estimated that current AI capabilities could already perform tasks representing 11.7 percent of U.S. labor activity and potentially trim up to $1.2 trillion in annual wages across finance, health care and professional services.

Some researchers question whether the technology is the primary driver of the dismissals. Fabian Stephany, assistant professor of AI and work at the Oxford Internet Institute, told CNBC that firms may be using artificial intelligence as a convenient explanation after expanding too aggressively during the pandemic. According to Stephany, the recent reductions resemble “market clearance” rather than a direct consequence of machine learning applications.

Companies Highlighting AI in 2025 Layoff Plans

The following corporations explicitly referenced artificial intelligence when outlining staff reductions or organizational changes this year.

Amazon

In October, Amazon announced the largest workforce restructuring in its history, eliminating 14,000 corporate roles. Senior Vice President Beth Galetti said in an internal communication that the company must operate “more leanly” to invest in its “biggest bets,” which include generative AI. Earlier in the year, Chief Executive Officer Andy Jassy warned employees that the rise of artificial intelligence would lead to fewer people in some current positions and more hiring in new areas linked to the technology.

Microsoft

Microsoft disclosed roughly 15,000 job cuts over the course of 2025, including about 9,000 positions that were identified for elimination in July. In a memo to staff, CEO Satya Nadella stated that the company must “reimagine” its mission for the AI era, shifting from traditional software delivery to a broader “intelligence engine” that allows customers to create their own digital tools.

Salesforce

Salesforce CEO Marc Benioff confirmed in September that the company had removed 4,000 customer support roles, reducing head count in that unit from 9,000 to around 5,000. Benioff said artificial intelligence enabled the streamlining and noted earlier in the year that AI was performing up to half of the company’s workload.

IBM

IBM’s approach combined job elimination with targeted hiring. CEO Arvind Krishna told the Wall Street Journal in May that AI chatbots had replaced several hundred human-resources employees. The company also announced a 1 percent global reduction in November, a move that could affect nearly 3,000 workers. Krishna emphasized that IBM is adding staff in software engineering, sales and marketing—areas he described as demanding higher-level problem-solving.

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CrowdStrike

Cybersecurity firm CrowdStrike said in May that it would lay off 5 percent of its workforce, or approximately 500 employees. In a memo filed with regulators, co-founder and CEO George Kurtz wrote that AI “flattens our hiring curve” and accelerates product development, marketing and back-office functions.

Workday

HR software provider Workday was among the earliest companies in 2025 to connect staff reductions to artificial intelligence. In February, the company announced plans to trim about 1,750 positions, equal to 8.5 percent of its workforce. CEO Carl Eschenbach said the decision would free resources for additional AI investment.

Diverging Views on AI’s Role

While the listed companies cite efficiency gains and strategic shifts toward machine learning, analysts say the overall impact of AI on employment remains uncertain. The technology can automate repetitive tasks, but its broader implementation is uneven across industries and job categories. Critics argue that labeling layoffs as AI-driven can obscure other factors such as post-pandemic recalibration, cost management or shifts in consumer demand.

Nevertheless, the pace of announcements suggests more workforce changes may follow as organizations scale pilot projects into full deployments. Challenger, Gray & Christmas continues to track company disclosures and notes that artificial intelligence is now a recurrent element in corporate restructuring statements, a development not seen at this magnitude in previous layoff cycles.

Whether AI ultimately leads to net job losses or stimulates different kinds of employment will depend on how quickly firms adopt the technology, how roles evolve and how the labor market adjusts. For 2025, however, the immediate effect has been clear: tens of thousands of workers have been displaced as businesses recalibrate for what executives describe as the next technological inflection point.

Crédito da imagem: Isbjorn / iStock / Getty Images