Michaela
Artificial intelligence adoption has directly led to roughly 55,000 job cuts across the United States in 2025, as multiple large companies reduced their workforces while integrating AI into operations.
Key Points
- AI adoption has directly caused roughly 55,000 job cuts in the U.S. in 2025.
- November layoffs hit 71,321, the highest for the month since 2022, with tech companies leading the cuts.
- Major corporations like Amazon and Microsoft have publicly cited AI as a factor in workforce reductions.
According to consulting firm Challenger, Gray & Christmas, U.S. employers reported 71,321 job cuts in November, marking a 24% increase from 57,727 layoffs in November 2024. This represents the highest number of November job cuts since 2022, when 76,835 positions were eliminated.
Through November, U.S. employers have announced a total of 1,170,821 job cuts, up 54% from the 761,358 layoffs reported during the same period last year. This marks the highest level of year-to-date job cuts since 2020, when 2,227,725 positions were eliminated through November, and only the sixth time since 1993 that job losses have exceeded 1.1 million by this point in the year.
In November, the technology sector remained a major source of layoffs, with Challenger, Gray & Christmas reporting 12,377 job cuts for the month. Year-to-date, tech companies have announced 153,536 layoffs, a 17% increase from the 130,701 cuts recorded through November of last year.
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Furthermore, last month, employers cited AI as the reason for 6,280 layoffs, bringing the total for 2025 to 54,695. Since 2023, when AI was first listed as a factor, it has been linked to 71,683 job cuts.
Several firms have publicly attributed a portion of their 2025 layoffs and workforce reductions to the impact of AI. In October, Amazon’s Senior VP of People Experience and Technology, Beth Galetti, described this generation of AI as the most transformative technology since the Internet, noting it allows companies to innovate at unprecedented speed. She added that Amazon aims to streamline its organization with fewer layers and increased ownership to move more efficiently for both customers and business operations.
Related: Disney to Invest $1B in OpenAI for AI-Generated Videos Featuring Iconic Characters
Microsoft is another major company implementing substantial workforce reductions this year. CEO Satya Nadella announced in July that the company would cut jobs as part of broader restructuring efforts, bringing Microsoft’s total layoffs in 2025 to approximately 15,000.
“We must reimagine our mission for a new era. 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,” Nadella wrote in a memo.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
