AI blamed for 80% increase in US layoffs
The American labour market is undergoing major changes as the impact of artificial intelligence of the size of organisations becomes known. This year, 696,309 layoffs have already been announced, an increase of 80% compared to 2024. This is according to data from Challenger, Gray & Christmas, an international consulting firm specialising in labour market research and personnel strategy.
The technology sector is being hit the hardest. So far, more than 74,000 jobs have been lost in that sector. This increase is mainly due to AI-driven automation.
Companies like Amazon, Google, and Microsoft are using artificial intelligence to make their operations more efficient, reducing the need for staff.
AI-related changes have already led to 20,000 layoffs in 2025, according to the report.
The tech sector is feeling the impact of generative AI deeply and profoundly. In May alone, 10,598 layoffs were announced, bringing the total for 2025 to 74,716. That’s 35% more than in the same period last year.
Companies are striving for greater efficiency and are increasingly using AI actively and purposefully. Amazon CEO Andy Jassy (pictured) admitted that his company needs fewer employees due to the integration of generative AI.
Microsoft carried out several rounds of layoffs in May and June, resulting in about 6,000 job losses. Google also cut about a quarter of its Google TV team in April.
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