More companies are pointing to AI as they lay off employees
Summary
More companies are citing artificial intelligence (AI) as a reason when they lay off workers. In 2025, firms announced 55,000 job cuts connected to AI, mostly in the tech sector, as they shift jobs toward automation and new AI tools.Key Facts
- In 2025, 55,000 jobs were cut with companies saying AI was a factor, over 12 times more than two years earlier.
- Most AI-related layoffs happened in tech-heavy states like California and Washington.
- Amazon plans to reduce some white-collar jobs by using AI “agents” to improve efficiency.
- Pinterest described job cuts as a way to invest more in AI systems.
- Some experts think companies might use AI as an excuse to justify layoffs or stop hiring.
- Coinbase cut 700 jobs, about 14% of its staff, to focus on AI-driven work.
- Financial tech company Block announced a plan to reduce its workforce by nearly half.
- Labor market analysts see AI having a bigger impact on fewer new hires than on layoffs so far.
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