AI layoffs in 2025: Over 55,000 US job cuts are linked to arrival of artificial intelligence – here’s list of companies

Layoffs have become a major concern in the job market in 2025, as many large companies have announced significant layoffs amid the increasing use of artificial intelligence. Artificial intelligence has led to almost 55,000 job cuts in the US this year alone, according to a report by CNBC citing consulting firm Challenger, Gray & Christmas.

Total layoffs reached 1.17 million in 2025; this was the highest figure since 2020, when 2.2 million layoffs were announced.

The report stated that US employers reported 153,000 layoffs in October and more than 71,000 in November, and that artificial intelligence was responsible for more than 6,000 of these layoffs.

The Massachusetts Institute of Technology published a report in November stating that AI could currently replace 11.7% of the US labor market and save up to $1.2 trillion in wages in finance, healthcare and other professional services.

However, some experts disagree that artificial intelligence is the main reason for significant layoffs. Fabian Stephany, an assistant professor of artificial intelligence who works at the Oxford Internet Institute, previously told CNBC that this might just be an excuse.

Stephany noted that many companies that have performed well during the pandemic have “significantly overhired” and that recent layoffs may simply be a “market clearing.”

“To some extent it’s pushing people out who don’t have a sustainable long-term perspective and saying ‘we miscalculated this two, three years ago, now they can become scapegoats and that’s because of AI,'” he added.

Check out companies announcing AI-related layoffs —

Amazon

The tech giant announced its biggest layoffs ever, carrying out 14,000 corporate layoffs to focus on its “biggest bets” including artificial intelligence.

“This generation of AI is the most transformative technology we’ve seen since the internet, allowing companies to innovate faster than ever before… We believe we need to organize more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and our businesses,” Beth Galetti, senior vice president of human experience and technology at Amazon, wrote in a blog post.

Microsoft

Microsoft will lay off approximately 15,000 people by 2025, and in its last announcement in July, it signaled that 9,000 positions would be eliminated.

The report stated that CEO Satya Nadella, in a note sent to employees, emphasized that the company should ‘redesign’ its mission for a new era and emphasized the importance of artificial intelligence for the future of the company.

Nadella was quoted as saying: “What does empowerment look like in the age of AI? It’s not just about building tools for specific roles or tasks. It’s about building tools that enable anyone to create their own tools. This is the transition we’re driving from a software factory to an intelligence engine that empowers every person and organization to build what they need to succeed.”

sales force

The report noted that in September, CEO Marc Benioff announced that the company was laying off 4,000 customer support staff using artificial intelligence.

“I reduced it from 9,000 heads to about 5,000 because I needed fewer heads,” Benioff said in an interview on The Logan Bartlett Show podcast.

Benioff stated over the summer that AI currently drives 50% of the company’s business.

IBM’s

CEO Arvind Krishna told the Wall Street Journal earlier this year that AI chatbots have replaced the jobs of several hundred human resources workers.

But unlike other companies that cite AI as the reason for layoffs, the firm is increasing hiring in other fields that require more critical thinking, such as software engineering, sales and marketing, Krishna said. The company announced a 1% reduction in its global workforce in November, expected to affect approximately 3,000 employees.

crowd strike

Crowdstrike announced in May that it would lay off 5% of its staff, or 500 employees, citing artificial intelligence as the direct cause of the cuts.

“Artificial intelligence has always been fundamental to the way we work,” co-founder and CEO George Kurtz noted in the report. “AI flattens our hiring curve and helps us innovate faster from idea to product. It simplifies go-to-market, improves customer outcomes, and increases efficiency in both the front and back office. AI is a force multiplier across the business.”

Working day

Human resources platform Workday announced in February that it would lay off 8.5% of its workforce, or approximately 1,750 people, as the company increased its investment in artificial intelligence.

Workday CEO Carl Eschenbach stated that the layoffs were necessary to focus on artificial intelligence investments and free up resources.