The US job market faced a tough year in 2025. According to a report by consulting firm Challenger, Gray & Christmas, AI-related layoffs reached nearly 55,000 workers.
A total of 1.17 million employees lost their jobs throughout the year. This figure marks the highest level since the 2020 pandemic. In October, 153,000 workers were laid off. November saw 71,000 job cuts, with over 6,000 directly linked to artificial intelligence.
Tech giants led the way in these cuts. Companies like Amazon, Microsoft, Salesforce, CrowdStrike, and IBM let go of thousands of employees. Executives pointed to AI as the main reason behind their decisions.
Which Companies Cut How Many Workers?
Amazon: The Largest Layoff in Company History
Amazon eliminated 14,000 corporate positions in October. This decision went down as the largest layoff in the company’s history. Management stated they made this move to focus on their “biggest bets.”
Amazon Senior Vice President of People Experience and Technology Beth Galetti published a blog post about the decision.
Galetti wrote: “This generation of AI is the most powerful technology we’ve seen since the Internet. It enables companies to innovate much faster than ever before. We need to move as quickly as possible for our customers and business. For this, we need a leaner structure, fewer layers, and more ownership.”
CEO Andy Jassy had given employees a clear message earlier in the year. Jassy said AI would shrink the company’s workforce. He stated that fewer people would be needed for certain positions.
Microsoft: 15,000 Positions Eliminated
Microsoft announced layoffs at different times throughout 2025. A total of 15,000 employees left the company during the year. The latest wave in July cut 9,000 positions.
CEO Satya Nadella emphasized in an internal memo that the company was entering a new era. Nadella said, “We need to reimagine our mission for a new era.” He explained the importance of AI for the company in his note.
Nadella shared his views in the message: “What does empowerment look like in the era of AI? It’s not just about building tools for specific roles or tasks. It’s about building tools that empower everyone to create their own tools. That’s the shift we are driving. We’re moving from a software factory to an intelligence engine that empowers every person and organization.”
Salesforce: 4,000 Customer Support Jobs Cut
Salesforce CEO Marc Benioff made an announcement in September. The company ended the employment of 4,000 customer support workers. Benioff confirmed that AI systems were used in this process.
The company automated its customer service operations. AI-powered chatbots and support systems replaced human workers. Salesforce presented this decision as part of their efficiency and cost reduction strategy.
CrowdStrike: 5 Percent of Workforce Gone
Cybersecurity software company CrowdStrike announced layoffs in May. The company reduced 5 percent of its total workforce. This decision affected 500 employees.
CrowdStrike directly attributed the cuts to AI. Company management stated in their announcement that AI had changed business processes. They noted that certain positions were no longer necessary.
IBM: Chatbots Took Over HR Tasks
IBM CEO Arvind Krishna gave an interview to the Wall Street Journal. Krishna said AI chatbots had taken over the jobs of a few hundred human resources workers.
However, IBM took a different approach than other companies. Krishna explained that the company increased hiring in areas like software engineering, sales, and marketing. These positions require more analytical thinking.
In November, IBM announced another round of cuts. The company reduced its global workforce by 1 percent. This decision affected approximately 3,000 employees.
What’s Happening in the Industry?
Tech companies are restructuring their workforce while increasing AI investments. Executives explain these decisions with terms like “efficiency” and “speed.”
Amazon, Microsoft, and other major companies are investing billions of dollars in AI. These investments create new positions while eliminating some existing roles.
Analysts predict similar trends will continue in 2026. Customer service, human resources, and administrative positions appear to be at risk.
Sources
- CNBC – AI was behind over 50,000 layoffs in 2025 — here are the top firms to cite it for job cuts: Comprehensive report on AI-related layoffs across major US tech companies including Amazon, Microsoft, Salesforce, CrowdStrike, and IBM.
