More companies are pointing to AI as they lay off employees
As the world continues to witness the rapid advancement of technology, the impact of artificial intelligence on the workforce is becoming increasingly evident. In recent months, companies like Pinterest and Dow have announced layoffs, attributing the job cuts to a shift towards AI. This trend signals a growing investment in AI technology by employers, leading to concerns about job security for many workers.
According to Challenger, Gray and Christmas, the number of job cuts directly linked to AI has seen a significant increase in recent years. In 2025 alone, companies announced 55,000 job cuts attributed to AI, marking a twelvefold increase from just two years prior. The majority of these layoffs were concentrated in the tech sector, particularly in states like California and Washington.
Companies like Amazon are embracing AI as a means to boost efficiency and productivity. CEO Andy Jassy revealed plans to reduce white-collar jobs in favor of AI “agents” in the coming years. This shift towards automation and AI has already resulted in the cutting of 16,000 jobs at Amazon earlier this year.
While some economists downplay the immediate impact of AI on the workforce, the wave of layoffs linked to AI raises concerns about the future of employment. Ben May of Oxford Economics suggests that companies may be using AI as a convenient excuse to justify job cuts, rather than addressing underlying issues such as overhiring.
Despite the potential benefits of AI in improving efficiency, some experts believe that companies are using AI as a pretext for downsizing. Lisa Simon of Revelio Labs points out that AI is influencing hiring practices more than layoffs, as companies seek to do more with less.
Companies that have announced AI-related cuts
Pinterest: The social media company plans to cut 15% of its workforce to focus on expanding its AI capabilities.
Dow: The chemical and plastics manufacturer is eliminating 4,500 jobs as it increases its use of AI and automation.
Indeed and Glassdoor: Both career services firms are slashing 1,300 jobs, citing the need to adapt to a changing landscape influenced by AI.
Chegg: The online education platform is eliminating 45% of its workforce due to the impact of AI and reduced traffic from search engines.
CrowdStrike: The cybersecurity company is cutting 500 positions as it leans into AI to address evolving threats and customer needs.
HP: The computer and software maker expects to reduce its global headcount by 4,000 to 6,000 employees as part of a wider initiative to increase productivity using AI.
Workday: The cloud-based platform provider is eliminating 1,750 jobs to better align resources with the growing demand for AI-driven solutions.
As companies continue to adopt AI technologies, the impact on the workforce is expected to persist. Challenger predicts that AI-related layoffs will continue across various industries, reshaping the job market in the years to come.
