AI accounted for nearly 55,000 job cuts in the United States this year.
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Storyboard01-01-2026, 11:53

AI Triggers Mass Layoffs: Tech Giants Cut Tens of Thousands of Jobs in 2025

  • Companies cited AI for nearly 55,000 US job cuts in 2025, according to Challenger, Gray & Christmas.
  • Major corporations like Amazon, Microsoft, Salesforce, IBM, and CrowdStrike announced significant workforce reductions, linking them to AI adoption.
  • Rising inflation, higher tariffs, and cost efficiency needs are driving companies to use AI as a short-term solution.
  • An MIT study indicates AI can perform 11.7% of US labor tasks, potentially saving $1.2 trillion in wages across various sectors.
  • While AI automates routine work, some companies like IBM are still hiring for critical thinking roles, signaling a shift in workforce demands.

Why It Matters: AI is rapidly reshaping the job market, leading to significant layoffs as companies seek efficiency and cost savings.

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