Job cuts linked to artificial intelligence surged in 2025, with nearly 55,000 US layoffs attributed to AI adoption, according to consulting firm Challenger, Gray & Christmas. Total job cuts reached about 1.17 million, the highest since 2020. Companies such as Amazon and Salesforce cited AI-led efficiency gains as a factor. However, researchers note that pandemic era overhiring also played a role, with AI sometimes used to justify broader cost-cutting amid inflation and tariff pressures.