AI Layoffs in 2025 Surpass 50,000: How the Biggest Tech Giants Cited AI in Job Cuts
In 2025, artificial intelligence (AI) emerged not only as a transformative technological force but also as a significant factor behind widespread layoffs in the US tech sector. According to new data from consulting firm Challenger, Gray & Christmas, reported by CNBC, over 54,800 job cuts this year explicitly cited AI as the reason—marking one of the largest drivers of workforce reductions across the technology industry.
The Scale and Context of AI-Related Layoffs
The figure of 54,883 jobs lost due to AI reflects a growing trend where companies are leveraging AI to reduce costs amid inflationary pressures, tariffs, and the need to boost profitability. A recent study by the Massachusetts Institute of Technology (MIT) released in November 2025 highlighted that AI could potentially handle approximately 11.7% of jobs in the US. The study further estimated that AI adoption might help companies save as much as $1.2 trillion in wages, particularly in sectors such as finance, healthcare, and professional services.
Despite these projections, experts caution that AI might sometimes be a convenient explanation for layoffs that have more complex causes. Fabian Stephany, assistant professor of AI and work at the Oxford Internet Institute, mentioned to CNBC that many organizations arguably overhired during the pandemic and are now using AI as an “excuse” for downsizing.
How Four Major Tech Companies Have Incorporated AI in Their Layoff Announcements
Several leading technology firms have explicitly referenced AI as part of their explanations for workforce reductions in 2025. Below is a look at four of the biggest names in tech and their approaches.
Amazon
Amazon, the global e-commerce leader, announced one of the largest rounds of job cuts this year—laying off approximately 14,000 corporate employees. Beth Galetti, Amazon’s senior vice president of people experience and technology, framed the cuts as part of organizational restructuring aimed at becoming “leaner” and more agile. She emphasized AI’s role by calling it "the most transformative technology we’ve seen since the Internet," helping the company innovate faster within existing markets and new domains.
However, during Amazon’s earnings call, CEO Andy Jassy downplayed AI as the immediate cause, stating the restructuring was more about culture than financial or AI reasons.
Microsoft
Microsoft carried out four major rounds of layoffs this year, trimming about 15,000 jobs. The company underscored AI’s growing importance internally; Julia Liuson, president of Microsoft’s Developer Division, communicated that AI usage is now “core to every role and every level.” She encouraged managers to make AI adoption part of employee performance evaluations.
Microsoft is also exploring integrating specific AI usage metrics into next fiscal year’s staff performance reviews to accelerate adoption of its Copilot AI services.
Salesforce
Salesforce confirmed cutting 4,000 customer support positions through AI automation. CEO Marc Benioff described AI’s impact as revolutionary, revealing that it now performs “up to 50% of the work” in the company. He highlighted that AI automation helped Salesforce connect with over 100 million leads that had previously gone uncontacted in the company’s 26-year history.
Salesforce employs an "omnichannel supervisor" system that blends AI and human agents, with AI identifying when human involvement is necessary.
IBM
IBM CEO Arvind Krishna disclosed that AI chatbots had replaced several hundred human resources roles, alongside cuts in marketing and communications. About 200 HR positions were eliminated through AI agents. IBM remains focused on hiring talent for roles requiring advanced critical thinking, such as engineering, sales, and marketing.
The Ongoing Debate Around AI and Job Cuts
While AI’s role in enabling automation and efficiency gains is clear, the conversation about its impact on employment remains nuanced. Experts like Fabian Stephany suggest the job cuts could partly be due to excess hiring during earlier years rather than AI alone. Nevertheless, companies are openly acknowledging AI as a catalyst for restructuring, signaling a shift in how the tech industry operates.
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