Overview

• Tech companies announced 74,716 cuts from January to May 2025, a 35% rise year-over-year, with leaders attributing reductions to automation-boosted productivity and cost optimization.
• Microsoft revealed more than $500 million in savings from AI-powered call centers last year and said AI wrote 35% of new product code even as it slashed over 9,000 jobs this year.
• Amazon CEO Andy Jassy and Salesforce CEO Marc Benioff have said extensive tool use will shrink their workforces after AI began handling 30% to 50% of routine tasks.
• Payroll processor ADP reported a 20–25% drop in entry-level tech roles since 2023, contributing to a graduate unemployment rate above the national average while tenured positions have grown.
• An Upwork Research Institute survey found that the heaviest users of AI tools are 88% more likely to burn out and twice as likely to quit, highlighting urgent calls for reskilling and more human-centered integration.