AI should create new jobs. But instead, AI is currently causing more job cuts than we have seen in years. Layoffs are at their highest levels in years and resemble the financial crisis of 2008. A similar peak in layoffs was observed here.
AI plays an increasingly significant role in daily life, both privately and professionally. Many companies claimed back then that AI would be a win-win situation for everyone: Employees would be relieved thanks to AI, and new positions would even be created because of AI.
However, the latest figures from a staffing company show that in 2025, more people were laid off than in years. One reason for this is also the significant expansion of AI capabilities.
1.2 million jobs were cut in 2025, a large portion due to artificial intelligence
Where do the data come from? The staffing consultancy Challenger, Gray & Christmas has investigated in a report how employment conditions have changed in the US market. A total of 1.2 million jobs were eliminated, the highest number in years. 2025 was the year with the highest job cuts since 2020, matching the financial crisis of 2008, when 1.22 million jobs were lost.
Where were the most positions cut? At the top of private sector layoffs is the technology sector, with 154,445 positions cut in 2025, representing a 15% increase from 133,988 job cuts in 2024. The report states:
The technology sector has focused much faster than any other industry on the development and implementation of artificial intelligence. Combined with overstaffing in the last ten years, this has led to a wave of job losses in the industry.
Artificial intelligence, which was promoted by some companies as a savior for the job market, instead resulted in many job cuts in 2025.
What is the current situation? In fact, these trends are not necessarily surprising. Time and again, CEOs speak publicly about how thousands of people have been laid off. This way, costs can be saved, it is often said.
The strong AI boom is currently especially affecting young people, who are finding it particularly difficult to find a job. And experts warn that the impact of AI could also extend to those with more experience.
Artificial intelligence is seen as a major challenge for many areas. A CEO has shared in a conversation how he has transformed his entire company to make it AI-ready. Employees had to be let go who refused to use AI: A CEO laid off almost 80% of his employees because they refused to use AI: Two years later he says he would do it again
