AI Reshapes Tech Jobs in 2025 as Layoffs Surge Across Global Companies

Artificial intelligence is rapidly transforming how companies operate—and in 2025, that transformation is leaving a clear and unsettling mark on the global job market. While AI tools are boosting productivity and streamlining operations, they are also emerging as a major driver of widespread layoffs, particularly across the technology sector, according to reports by Reuters, Bloomberg, and The Wall Street Journal.

Data compiled by Layoffs.fyi shows that more than 122,549 tech employees have lost their jobs this year across 257 technology companies. In the United States alone, over 54,000 job cuts have been directly linked to AI-driven changes, based on figures from Challenger, Gray & Christmas, cited by a famous. The numbers reinforce a growing consensus highlighted by The Financial Times: automation is no longer experimental—it is now central to corporate cost-cutting strategies.

Across Silicon Valley and beyond, companies are increasingly deploying generative AI to take over tasks once performed by humans. From coding assistance and customer support to data analysis and internal workflows, automation is becoming deeply embedded in daily operations, a trend closely tracked by TechCrunch and The New York Times. Challenger, Gray & Christmas reports that total US job cuts reached 1.17 million in 2025, the highest level since 2020, with AI-led efficiency initiatives playing a significant role.

Academic research supports this shift. An MIT study, highlighted by MIT Technology Review, found that AI can already perform 11.7 percent of US jobs, with the potential to save $1.2 trillion in wages across sectors including finance, healthcare, and professional services. While new AI-focused roles are emerging, publications such as The Economist note that job creation is not keeping pace with the displacement of traditional roles.

Microsoft offers one of the clearest examples of this transition. As reported by Bloomberg and Forbes, the company has carried out around 15,000 layoffs in 2025 through multiple rounds. Julia Liuson, president of Microsoft’s Developer Division, told managers that AI adoption should factor into performance assessments, stating that “using AI is no longer optional, but it’s core to every role and every level.” Microsoft is also evaluating how employees use tools like Copilot to improve efficiency, signalling that AI integration is now a baseline expectation.

Amazon is following a similar path. According to coverage by Reuters and The Wall Street Journal, the company has reportedly laid off more than 14,000 employees this year, with engineers accounting for nearly 40 per cent of those affected. Senior vice president Beth Galetti described AI as “the most transformative technology we’ve seen since the Internet,” while CEO Andy Jassy warned that AI would mean “fewer people doing some of the jobs that are being done today.” The company says the goal is leaner teams supported by automation and a smaller pool of highly specialised talent.

At Salesforce, automation has directly replaced thousands of roles. CEO Marc Benioff confirmed to analysts, as reported by CNBC and The Financial Times, that 4,000 customer support jobs were eliminated in September 2025, noting that AI now handles up to 50 per cent of the company’s workload. “I’ve reduced it from 9,000 heads to about 5,000, because I need fewer heads,” Benioff said.

The impact is not limited to big tech. Companies including Oracle, CNN, Dropbox, Block, and Workday have announced AI-related layoffs, while brands like Adidas show that the trend is spreading beyond technology, according to Reuters and Bloomberg. The World Economic Forum estimates that 41 per cent of global companies expect workforce reductions over the next five years due to AI.

As demand for AI, data, and fintech skills grows toward 2030, 2025 is emerging as a clear turning point, where automation-driven efficiency is advancing faster than workforce reskilling efforts can keep up.