U.S. tech companies cut 94,000 jobs in 2025 amid AI adoption

In the first half of 2025, U.S. technology companies laid off approximately 94,000 employees as part of a broader shift toward artificial intelligence, according to Final Round AI.

Mass layoffs began in January and have affected major firms including Microsoft, IBM, and Amazon. Some companies conducted multiple rounds of cuts and have openly stated plans to continue replacing roles with AI-powered solutions.

The jobs most affected include HR personnel, support teams, content creators, and other positions seen as easier to automate. Analysts emphasize that these cuts are not a sign of crisis or financial strain — rather, they are aimed at improving operational efficiency and profitability. Microsoft, for instance, increased its Q1 2025 revenue by 13% to $70.1 billion, while eliminating roughly 15,000 positions and freezing hiring plans.

The trend has raised concerns among tech workers and labor unions, with experts warning of a potential rise in unemployment and calling for urgent adaptation of the labor market to the evolving AI landscape.