Particle.news

Download on the App Store

AI-Driven Tech Layoffs Jump 36% as Young Workers Face Rising Unemployment

Goldman Sachs forecasts generative AI could displace up to 7 percent of U.S. workers over the next decade

Overview

  • Challenger, Gray & Christmas data show 20,219 U.S. tech job cuts in 2025 with 10,375 explicitly attributed to AI, marking a 36 percent increase year over year.
  • Major employers including Microsoft and Intel have slashed positions even as their profits and market valuations climb, highlighting a profit-versus-headcount paradox.
  • The unemployment rate for tech workers aged 20 to 30 has risen nearly three percentage points since early 2024, over four times the increase in the overall U.S. jobless rate.
  • Official labor statistics remain low and steady, prompting experts to call for timely, localized “headlight” data to reveal AI’s true impact and guide policy.
  • Industry leaders and policymakers are urging targeted reskilling programs and forward-looking workforce policies to mitigate projected AI-driven displacement.