Overview
- Outplacement firm Challenger, Gray & Christmas counted roughly 54,883 U.S. layoffs tied to AI in 2025, versus about 1.17–1.2 million total cuts, including 71,321 in November with about 6,000 attributed to AI.
- Major employers explicitly linked reductions to automation: Amazon announced about 14,000 corporate cuts, Microsoft trimmed roughly 15,000 roles, Salesforce ended about 4,000 support jobs with AI handling up to half its workload, and IBM flagged a low single‑digit percentage reduction as chatbots replaced several hundred HR roles.
- Layoffs.fyi tracked 122,549 tech layoffs across 257 companies this year, underscoring that sector cuts far exceeded those officially attributed to AI.
- Researchers and analysts questioned causation, with Oxford’s Fabian Stephany warning that some firms cited AI after pandemic over‑hiring or as part of broader restructuring and cost pressures including tariffs.
- Economists, including KPMG’s Diane Swonk, said AI‑related capital spending is lifting growth with limited hiring, and reporting pointed to entry‑level freezes and new AI‑use expectations in performance reviews as labor market headwinds heading into 2026.