In 2025, layoffs have shaken up the job market, largely driven by advances in artificial intelligence (AI). Major companies are cutting thousands of jobs, with AI being a key factor. According to Challenger, Gray & Christmas, AI has already been linked to about 55,000 layoffs in the U.S. this year alone. Overall, the total job cuts have reached 1.17 million—making 2025 the worst year for layoffs since the pandemic.
In October, employers announced around 153,000 job cuts, and by November, that number rose to over 71,000. AI was cited in more than 6,000 cases just in November. As companies grapple with rising inflation and increasing costs, AI has emerged as a tempting short-term solution.
A study from the Massachusetts Institute of Technology (MIT) highlighted that AI can potentially take on roles that constitute 11.7% of the U.S. job market. This could save around $1.2 trillion in wages across sectors like finance and healthcare. However, not everyone believes AI is the sole culprit behind these cuts. Fabian Stephany, an assistant professor at the Oxford Internet Institute, pointed out that many companies overhired during the pandemic. He suggested that recent layoffs might just be a market correction rather than solely an AI issue.
Big Players and Their Layoff Strategies
Amazon: In October, Amazon announced a record layoff, cutting 14,000 corporate jobs as it shifted focus to AI. CEO Andy Jassy has said that less workforce is needed for some current roles, while new roles will emerge as AI takes the spotlight.
Microsoft: Microsoft has announced around 15,000 job cuts throughout 2025, with CEO Satya Nadella emphasizing the need to “reimagine” their mission for the era of AI. He believes in empowering employees to create their own tools rather than relying on traditional roles.
IBM: IBM’s CEO, Arvind Krishna, explained that while some HR jobs were eliminated due to AI, the company has seen an increase in hiring in areas requiring critical thinking, such as software engineering. They plan to cut about 1% of staff, affecting nearly 3,000 employees.
CrowdStrike: This cybersecurity firm announced it would lay off 500 employees, attributing this decision directly to AI. CEO George Kurtz emphasized that AI enhances efficiency and accelerates innovation.
Workday: This HR-focused company announced cuts of around 8.5% of its workforce, or roughly 1,750 jobs. CEO Carl Eschenbach stated that this move was necessary to prioritize funding for AI.
As companies adapt to the changing landscape of job functions influenced by technology, it remains to be seen how workers will react and what new roles will arise. The ongoing dialogue around AI’s impact on employment is critical in understanding the future of work. AI might be reshaping employment, but it also presents opportunities for new types of jobs as companies innovate and evolve.
For more insights on how companies are leveraging AI, you can read further from sources like CNBC and MIT.
Source link
Jobs,Meta Platforms Inc,Amazon,Amazon.com Inc,Generative AI,Artificial intelligence,Losing a job,Layoffs,Business,Technology,Breaking News: Technology,Salesforce Inc,Microsoft Corp,International Business Machines Corp,United States,Personnel,business news
