AI is leading to thousands of job losses, report finds [View all]

Source: CBS News

Updated on: August 1, 2025 / 1:39 PM EDT


The U.S. job market, already showing the strain from global trade tensions, is showing early signs of another critical issue facing workers today: artificial intelligence.

In July alone, rising adoption of generative AI technology by private employers accounted for more than 10,000 job cuts, according to a report released this week by Challenger, Gray & Christmas. The outplacement firm lists AI as one of the top five factors contributing to job losses in 2025.

Layoffs have jumped this year, adding to fresh concerns about a pullback in hiring after new labor data on Friday showed that employers added only 73,000 jobs in July — well short of analyst forecasts. Through July, companies have announced more than 806,000 private-sector job cuts, the highest number for that period since 2020, according to Challenger, Gray & Christmas.

Of those layoffs, the technology industry wielded the sharpest axe — private companies in the sector have announced more than 89,000 job cuts, up 36% from a year ago. Since 2023, more than 27,000 job cuts have been directly tied to the advent of AI, according to the firm. "The industry is being reshaped by the advancement of artificial intelligence and ongoing uncertainty surrounding work visas, which have contributed to workforce reductions," Challenger, Gray & Christmas said.

Read more: https://www.cbsnews.com/news/ai-jobs-layoffs-us-2025/