The year 2025 has witnessed a seismic shift in the global job landscape, with artificial intelligence emerging as a central force behind widespread corporate restructuring and significant workforce reductions. A recent report by consulting firm Challenger, Gray & Christmas, cited by CNBC, reveals a stark figure: AI has directly contributed to nearly 55,000 job losses in the United States this year alone.
The Scale of the 2025 Job Cuts
The total number of job cuts announced in the US for 2025 has reached 1.17 million, marking the highest level since 2020 when the pandemic triggered 2.2 million layoffs. The momentum continued through the latter part of the year, with employers reporting 153,000 cuts in October. November saw over 71,000 positions eliminated, of which more than 6,000 were directly attributed to the integration of AI technologies.
Adding a quantitative perspective, a November report from the Massachusetts Institute of Technology (MIT) indicated that AI is already capable of automating tasks equivalent to 11.7% of the US labour market. The potential wage savings from this automation across sectors like finance, healthcare, and professional services could amount to a staggering $1.2 trillion.
Major Companies Citing AI in Restructuring
Several industry giants have publicly linked their workforce adjustments to strategic pivots towards AI.
Amazon announced its largest-ever corporate layoffs, cutting 14,000 jobs. Beth Galetti, Senior Vice President of People Experience and Technology, explained in a blog post that this "leaner" organization is necessary to move quickly in the era of AI, which she called "the most transformative technology we’ve seen since the Internet."
Microsoft has cut around 15,000 jobs by 2025, with 9,000 roles announced in July. CEO Satya Nadella, in a memo to staff, framed the changes as part of reimagining the company's mission for the AI era, shifting from a "software factory" to an "intelligence engine."
Salesforce CEO Marc Benioff stated in September that the company laid off 4,000 customer support staff by leveraging AI, reducing the team from 9,000 to about 5,000. He noted that AI was already handling up to 50% of the company's service work.
Other notable examples include:
- IBM: CEO Arvind Krishna confirmed AI chatbots replaced "a few hundred" HR roles, though hiring increased in areas like software engineering. The company also announced a separate 1% global workforce reduction (approx. 3,000 jobs) in November.
- Crowdstrike: The cybersecurity firm cut 5% of its staff (500 employees) in May, citing AI as a direct reason and a "force multiplier" that flattens the hiring curve.
- Workday: The HR platform cut 8.5% of its workforce (roughly 1,750 jobs) in February to free up resources for increased AI investment.
Expert Debate: Is AI the Real Culprit?
Despite the clear trend, some analysts urge caution against blaming AI exclusively for the job market turmoil. Fabian Stephany, an assistant professor of AI and work at the Oxford Internet Institute, suggested to CNBC that AI might be serving as a convenient scapegoat.
He argued that many companies "significantly overhired" during the pandemic boom years. The current layoffs, in his view, could represent a necessary "market clearance"—a correction for unsustainable hiring rather than a pure displacement by technology. "Instead of saying 'we miscalculated this two, three years ago,' they can now come to the scapegoating, and that is saying 'it’s because of AI,'" Stephany explained.
This debate highlights a complex reality where technological adoption, post-pandemic economic adjustments, and corporate strategy are deeply intertwined, shaping the future of work in 2025 and beyond.
