Layoffs driven by artificial intelligence have marked the 2025 job market, with major companies announcing thousands of job cuts attributed to AI advancements. According to consulting firm Challenger, Gray & Christmas, AI was responsible for nearly 55, 000 layoffs in the U. S. this year. Overall, 1. 17 million job cuts were reported in 2025, the highest since the 2. 2 million layoffs announced during the 2020 Covid-19 pandemic. In October, employers announced 153, 000 cuts, followed by over 71, 000 in November, with AI cited in more than 6, 000 cases that month. Economic pressures such as rising inflation and tariffs have prompted firms to seek cost-cutting solutions, making AI an attractive short-term option. A November study from the Massachusetts Institute of Technology found AI capable of performing 11. 7% of U. S. jobs and potentially saving $1. 2 trillion in wages across sectors like finance, healthcare, and professional services. However, skepticism remains regarding AI's true impact on layoffs. Fabian Stephany, assistant professor of AI and work at Oxford Internet Institute, told CNBC that AI might serve as a convenient excuse.

He noted that many companies that thrived during the pandemic "significantly overhired, " and recent layoffs could be "market clearance, " dismissing prolonged unsustainable staffing under the guise of AI influence. Several leading firms cited AI in their 2025 layoffs and restructuring: - **Amazon:** In October, Amazon announced its largest layoff event, cutting 14, 000 corporate roles as it bet heavily on AI development. Beth Galetti, SVP of people experience and technology, highlighted AI as the most transformative technology since the Internet, emphasizing the need for a leaner organization to innovate rapidly. CEO Andy Jassy had earlier warned that AI would reduce the workforce, shifting job functions. - **Microsoft:** The company cut approximately 15, 000 jobs in 2025, including 9, 000 roles in July. CEO Satya Nadella described a need to "reimagine" Microsoft's mission in the AI era, emphasizing empowerment through building tools enabling individuals and organizations to create custom solutions. - **Salesforce:** CEO Marc Benioff confirmed 4, 000 customer support job cuts aided by AI in September, reducing staff from 9, 000 to 5, 000 as AI performed up to 50% of the workload. - **IBM:** CEO Arvind Krishna revealed AI chatbots replaced several hundred human resources positions. Unlike others, IBM continued to hire in critical thinking roles like software engineering, sales, and marketing. In November, IBM announced a global reduction of about 1%, potentially impacting 3, 000 employees. - **CrowdStrike:** In May, the cybersecurity firm laid off 5% (500 employees), directly linking the cuts to AI. CEO George Kurtz highlighted AI’s role in accelerating innovation, streamlining operations, and serving as a "force multiplier" across the company. - **Workday:** Early in the year, Workday cut 8. 5% of its workforce (around 1, 750 jobs) to reallocate resources toward AI investment. CEO Carl Eschenbach explained the layoffs were necessary to prioritize AI initiatives. As companies navigate economic challenges and evolving technologies, AI continues to reshape the workforce, fueling significant layoffs while simultaneously driving new priorities and innovation strategies.