The massive adoption of AI in workplaces in 2025 has led to some of the biggest job displacements in recent times. As tech firms preferred replacing their human workforce with AI counterparts, workforces around the world were forced to reskill and challenge AI at something it isn’t good at. The damage, however, was done, and the statistics prove it. According to new data from consulting firm Challenger, Gray & Christmas, AI-related layoffs in the United States alone crossed the 50,000 mark in 2025, with companies citing the technology as a primary driver for nearly 55,000 job cuts.
The major surge in workforce reductions comes at a time when tech corporations face a lot of pressure, particularly concerning stubborn inflation, high tariffs, and an urgent demand from investors to boost profitability. Another study from the Massachusetts Institute of Technology (MIT) released in late 2024 highlighted this shift, suggesting that AI is now capable of handling roughly 11.7% of US jobs, potentially saving companies $1.2 trillion in annual wages.
While some experts, including Oxford’s Fabian Stephany, argue that AI is being used as a convenient excuse for companies to shed staff after pandemic-era overhiring, several of the world’s most influential tech firms have been explicit about their AI-driven restructuring.
1. Amazon
The e-commerce titan cut 14,000 corporate roles this year alone. Amazon’s leadership described the move as a necessity to become more agile. Senior VP Beth Galetti noted that this generation of AI is the most transformative technology since the internet, enabling the company to operate with “fewer layers and more ownership.”
2. Microsoft
Microsoft, which slashed approximately 15,000 jobs across four major rounds, has integrated AI directly into its performance metrics. Internal memos revealed that “using AI is no longer optional” and is now considered “core to every role.” The company is even exploring formal AI usage benchmarks for future employee evaluations.
3. Salesforce
CEO Marc Benioff confirmed that 4,000 customer support roles were eliminated as AI automation now handles up to 50% of the company’s workload. Benioff highlighted the success of “agentic sales,” noting that AI agents are now calling back millions of leads that human staff previously couldn’t reach, coordinated by an “omnichannel supervisor” system.
4. IBM
IBM CEO Arvind Krishna revealed that the company has replaced several hundred human resources positions with AI agents. Additionally, roles in marketing and communications were eliminated. Krishna revealed that IBM is shifting its hiring focus exclusively to roles requiring “deep critical thinking,” such as engineering and high-level sales.
AI at workplace: Adapt or get replaced
The 2025 layoff trend highlights a growing divide in the labour market. While thousands of roles in customer support, HR, and middle management are being phased out, tech leaders like JPMorgan Chase CEO Jamie Dimon are urging workers to adapt. “Learn these skills,” Dimon noted in a recent address, “and you’ll have plenty of jobs.”
