AI has emerged as a major contributor to job cuts, particularly in the U.S., where over 10,000 positions were lost in 2025 due to automation. Entry-level jobs are particularly affected as companies replace junior staff with AI solutions. The job market is slowing, with rising unemployment rates among recent graduates and young tech workers. In total, over 806,000 layoffs have been reported in the U.S. so far in 2025, with the tech industry facing more than 89,000 of those job cuts, predominantly driven by AI efficiency increases.
In the U.S., in the first seven months of 2025 alone, generative AI adoption was directly linked to over 10,000 job cuts, according to new data from outplacement firm Challenger, Gray & Christmas.
AI is becoming one of the top drivers of workforce reductions, with companies announcing more than 806,000 job cuts in the U.S. as of 2025.
The tech sector has been hit the hardest, with over 89,000 layoffs in the industry alone, leading to companies becoming more selective about hiring.
Companies are looking to automate tasks traditionally handled by junior staff, resulting in a significant impact on entry-level job opportunities.
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