Companies that cited AI for layoffs slash tens of thousands of jobs in 2025

Layoffs have dominated the job market in 2025, with major corporations across technology and professional services citing artificial intelligence as a key factor behind workforce reductions, according to consulting firm Challenger, Gray & Christmas, which reported that AI accounted for nearly 55,000 job cuts in the United States in 2025.

Rising inflation, higher tariffs and the need for cost efficiency have prompted companies to turn to AI as a short-term solution, while a Massachusetts Institute of Technology study released in November suggested that AI is already capable of performing 11.7 per cent of U.S. labour market tasks, potentially saving $1.2 trillion in wages across sectors including finance, healthcare and other professional services.

Amazon Amazon led the list with the largest single round of corporate layoffs in its history, cutting 14,000 roles to refocus on major investments including AI, while CEO Andy Jassy warned that AI would reduce the number of people performing certain tasks even as new roles emerge.

Microsoft

Microsoft cut roughly 15,000 jobs during 2025, with 9,000 roles announced in July alone, as CEO Satya Nadella emphasised AI as a tool to shift the company from a traditional software model to an intelligence-driven platform empowering users to create their own solutions.

Salesforce

Salesforce reduced its customer support workforce by 4,000 positions as AI automated up to 50 per cent of tasks, while CEO Marc Benioff confirmed the cuts were directly linked to the technology.

IBM

IBM’s CEO Arvind Krishna noted that AI chatbots had replaced several hundred human resources roles, though the company continued hiring in areas requiring critical thinking such as software engineering, sales and marketing, illustrating a more balanced approach.

CrowdStrike

Cybersecurity firm CrowdStrike announced a global workforce reduction of 1 per cent, affecting nearly 3,000 employees, and in May had already cut 5 per cent of staff citing AI as a driving factor, describing it as a force multiplier that streamlines operations and accelerates innovation. These examples underscore how AI is reshaping corporate staffing decisions, with technology adoption both automating routine work and prompting significant organisational restructuring across major U.S. firms.