In 2025, the layoff season never seemed to end. As job cuts were reported across the tech industry, the influence of artificial intelligence (AI) in reshaping work became impossible to ignore.
While the uptake of AI was widely recognised as contributing to layoffs in 2024, companies largely framed the job cuts as a response to broader economic uncertainty. Even as they touted the productivity gains promised by the uptake of AI tools, few firms were willing to explicitly link job cuts to AI or acknowledge that they were replacing human roles.
Growing Layoff Scale in 2025
Numerous leading technology firms revealed significant job reductions, attributing AI implementation as a primary reason. According to a report by the consulting firm Challenger, Gray & Christmas, AI was responsible for layoffs that resulted in at least 55,000 individuals losing their jobs in the United States this year.
US companies laid off 153,000 employees in October and 71,000 in November 2025, with AI cited in at least 6,000 of those job cuts, CNBC reported. Factors like inflation and tariffs also contributed, as AI tools now handle 11.7% of US jobs, potentially saving $1.2 trillion in wages across industries like finance and healthcare, according to MIT.
Microsoft reportedly cut 15,000 jobs in 2025, including 9,000 roles in July—about 4% of its workforce. Earlier, in May, over 6,000 jobs were eliminated, followed by another 300 in June. These layoffs span multiple countries and affect all levels, including Xbox’s gaming studios.
In an internal memo, CEO Satya Nadella stated the company needed to "reimagine" its mission for a new era. He also hinted at future workforce growth, but with AI-driven efficiency, saying, "The headcount we grow will grow with a lot more leverage than the headcount we had pre-AI."
In October, Amazon confirmed it would lay off at least 14,000 workers, with more cuts expected next year. Around 1,000 Indian employees are likely to be affected.
These layoffs highlight the growing impact of AI on workforces. Earlier, CEO Andy Jassy warned that AI would reduce the need for certain jobs, stating the company would require "fewer people doing some of the jobs" and more in other roles.
Salesforce cut around 4,000 customer service jobs, with AI agents taking over much of the workload. CEO Marc Benioff confirmed the layoffs in September.
"I’ve reduced it from 9,000 heads to about 5,000, because I need fewer heads," Benioff said in a podcast interview. He also revealed that AI now handles up to 50% of the company’s work.
In November, IBM announced it would cut jobs, amounting to a "low single-digit percentage" of its global workforce. With around 270,000 employees, even a 1% cut would mean at least 2,700 job losses.
CEO Arvind Krishna told the Wall Street Journal in May that AI chatbots had replaced a few hundred HR roles. However, he added that IBM had increased hiring in areas like software engineering, sales, and marketing, which require more critical thinking.
In May, cybersecurity firm Crowdstrike announced it would cut 5% of its workforce (around 500 jobs), citing AI as a key factor in driving efficiencies. CEO George Kurtz explained that AI helps streamline operations and boosts innovation.
Intel also plans to cut up to 24,000 jobs by 2025, driven by AI and automation. Duolingo is shifting away from contractors, as AI replaces certain tasks.
In India, TCS laid off 12,000 employees, about 2% of its workforce, citing AI adoption and economic uncertainty, while positioning the move as part of a push to upskill and redeploy workers.
