The US jobs market is going through a tough time. According to the latest data from Challenger, Gray & Christmas, employers in US have announced 696,309 job cuts, an increase of 80 percent from the 385,859 announced in the first five months of last year. The report suggests that it is 65,049 cuts away from matching the entire year’s total for 2024.
This rise in layoffs is attributed to the advent of AI which has emerged as a big disruptor in tech employment. Many firms including Amazon and Google have announced that layoffs are inevitable.
The report suggests that technology continues to be the leading job-cut sector as it faces mounting and rapidly changing disruptions. Technology companies announced 10,598 job cuts in May for a total of 74,716 cuts in 2025. This is up 35 percent from the 55,207 cuts announced during the same period last year.
“Technological Updates, including those related to AI implementation, led to 20,000 job cuts so far in 2025,” the report adds.
Amazon CEO Andy Jassy recently hinted at layoffs given the AI boom that the world has seen in the last few years. Jassy confirmed that the company will need fewer people as Amazon pushes for greater efficiency with the help of Generative AI.
Microsoft is reported to have laid off around 6,000 people in May, and has also done two rounds of layoffs in June as well. According to a report by The Information, the Google TV team laid off 25 percent of its staff in April.
