As companies continue to embrace artificial intelligence, job losses tied to the technology are mounting. By the end of 2025, U.S. employers had announced roughly 1.17 million job cuts, according to CNBC, the highest annual total since the COVID-era layoffs of 2020, when more than two million jobs were lost nationwide.
AI’s growing role in layoffs
One increasingly common driver behind those cuts: artificial intelligence.
The global outplacement and executive coaching firm Challenger, Gray and Christmas reports that AI has been cited as the reason for 54,694 planned layoffs in 2025 alone. Since companies first began explicitly blaming AI for job reductions in 2023, the technology has been linked to more than 71,000 announced cuts.
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Why companies are turning to AI
CNBC reports that as businesses face ongoing economic pressures, including inflation and tariffs many see AI as a way to reduce costs quickly.
A study from the Massachusetts Institute of Technology found that AI can replace 11.7% of the U.S. workforce, a shift that MIT estimates represents $1.2 trillion in wages across industries such as finance, health care, and professional services.
The study found AI is particularly effective at handling routine, human-type tasks in areas like human resources, logistics, and office administration.
Major companies cutting jobs
Several large corporations have openly linked workforce reductions to increased use of AI.
Amazon announced its largest round of layoffs ever in October, cutting 14,000 jobs as it reshaped its investment strategy around AI. In a blog post, Amazon Senior Vice President Beth Galetti said companies must operate “more leanly” as AI enables faster innovation.
Earlier in the year, Amazon CEO Andy Jassy told employees that AI would mean “fewer people doing some of the jobs that are being done today,” adding that the shift would likely reduce the company’s overall corporate workforce.
Microsoft also announced 15,000 layoffs in 2025. CEO Satya Nadella told employees the company was “recommitting” to its mission in what he described as a new era shaped by AI, emphasizing a renewed focus on security, quality, and AI transformation.
Other companies citing AI as a factor in job cuts include:
- IBM, which reportedly cut hundreds of human resource roles in favor of AI chatbots.
- Salesforce, which eliminated 4,000 workers, saying AI reduced the need for staff.
- CrowdStrike, which laid off about 500 workers, with executives saying AI has flattened hiring needs and sped up product development.
- Workday, which cut more than 1,700 jobs in 2025 while prioritizing AI investments.
