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AI adoption becomes an explicit catalyst for tech job cuts in 2025
In 2025, tech companies openly cited AI adoption as a driver of layoffs, with tens of thousands of U.
Layoffs swept through the technology sector in 2025, but unlike previous years, several companies directly linked job cuts to artificial intelligence adoption. Data from Challenger, Gray & Christmas shows AI-related restructuring contributed to at least 55,000 layoffs in the United States during the year. Companies increasingly cited AI-driven productivity gains as a reason to streamline roles, rather than attributing cuts solely to macroeconomic uncertainty. October and November alone saw more than 220,000 layoffs across U.S. firms, with thousands explicitly tied to AI.