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FMCG firms cut senior roles by 32%; Total headcount shrinks 9.26% in FY25
AI is quietly replacing thousands of jobs every month: Report
Over 10,000 layoffs in July 2025 alone attributed to AI, as Microsoft and Intel lead tech downsizing.
Even as they pioneer AI, big tech firms are slashing jobs at scale - Microsoft has cut over 15,000 jobs in the first seven months of 2025, citing “restructuring” and future-proofing.
Is AI going to take away your job? That’s no longer a hypothetical question — because it already is. Over 10,000 jobs were cut in July 2025 alone due to the growing adoption of artificial intelligence, according to a new report by Challenger, Gray & Christmas. Since 2023, more than 27,000 jobs have been eliminated with AI explicitly cited as the cause.
AI has now emerged as one of the top five reasons for job losses this year, contributing to a mounting crisis in the U.S. labour market. While layoffs at major companies like Microsoft and Intel have drawn the most attention, the automation wave is far more widespread—and not slowing down.
“AI was cited for over 10,000 cuts last month, and tariff concerns have impacted nearly 6,000 jobs this year,” said Andrew Challenger, SVP and labour expert at the outplacement firm.
The tech industry has borne the brunt of the shift, with thousands of entry-level and mid-tier roles disappearing in recent months. This trend is especially devastating for younger job seekers, with entry-level corporate roles down 15% year-on-year.
Corporate executives have increasingly acknowledged that AI is reducing workforce needs—and not just directly. Many companies are prioritising investments in AI tools over human hiring to brace for future economic uncertainty. That’s accelerating a larger shift toward leaner teams powered by automation.
AI isn’t the only reason for sweeping job cuts. The “DOGE Impact”—named after the Department of Government Efficiency, an AI-driven initiative led by Elon Musk—has led to nearly 290,000 layoffs in 2025 so far, becoming the top cause of workforce reduction this year. These cuts include direct layoffs in the federal workforce, contractor downsizing.
“DOGE Downstream Impact”: Over 13,000 additional cuts in NGOs and private organizations affected by reduced government funding. “DOGE is streamlining government operations, but the ripple effects are being felt across sectors,” said the report.
The second-largest driver of layoffs is market and economic conditions, responsible for 171,083 cuts in 2025. Rising inflation, shifting consumer demand, and cautious business sentiment are all factors contributing to the jobs crisis.
Even as they pioneer AI, big tech firms are slashing jobs at scale - Microsoft has cut over 15,000 jobs in the first seven months of 2025, citing “restructuring” and future-proofing. Other major players, including Intel and Amazon, have similarly moved to “optimize” their workforce while expanding AI capabilities.
The writing is on the wall: AI is not only transforming workflows but redefining the entire structure of employment. While automation can create new roles in the long term—especially for those skilled in AI development, data science, and systems engineering—the short-term reality is widespread displacement, especially in roles considered repetitive, administrative, or easily automated.
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