A.I., Crypto & Tech Stocks

2025 has seen a surge in job losses across the U.S., with artificial intelligence emerging as a key driver behind thousands of layoffs. According to consulting firm Challenger, Gray & Christmas, AI was explicitly cited as a factor in nearly 55,000 job cuts this year. Overall, employers announced more than 1.17 million layoffs through November—the highest annual total since the COVID-19 pandemic in 2020.

Economic pressures, including inflation, tariffs, and cost-cutting initiatives, have made AI an appealing tool for efficiency gains. A November study from the Massachusetts Institute of Technology estimated that AI could already perform tasks equivalent to 11.7% of the U.S. labor force, potentially saving trillions in wages across sectors like finance and healthcare.

However, skepticism remains. Fabian Stephany, an assistant professor of AI and work at the Oxford Internet Institute, has suggested that some companies may be using AI as a convenient explanation for reductions. He pointed out that many firms overhired during the pandemic boom and are now correcting those decisions, framing them as AI-driven to avoid admitting past miscalculations.

Several leading tech giants have openly linked AI advancements to workforce reductions as they reallocate resources toward innovation.

Workday In February, HR software company Workday announced cuts affecting 8.5% of its staff, or about 1,750 roles. CEO Carl Eschenbach emphasized the need to prioritize investments in AI and free up resources for future growth.

CrowdStrike Cybersecurity firm CrowdStrike reduced its workforce by 5%, eliminating around 500 positions in May. Co-founder and CEO George Kurtz described AI as foundational to the company's operations, acting as a "force multiplier" that streamlines processes, accelerates innovation, and improves efficiencies across the business.

IBM In May, IBM CEO Arvind Krishna revealed that AI chatbots had replaced several hundred HR roles. While the company later announced a 1% global cut potentially impacting nearly 3,000 employees in November, Krishna noted increased hiring in areas requiring critical thinking, such as software engineering, sales, and marketing.

Salesforce CEO Marc Benioff confirmed in September that AI had enabled a reduction in customer support staff from 9,000 to about 5,000—effectively cutting 4,000 roles. Benioff previously stated that AI was handling up to 50% of the company's work, allowing for fewer personnel in support functions.

Microsoft Microsoft implemented multiple rounds of cuts throughout 2025, totaling around 15,000 jobs. The largest wave in July eliminated 9,000 positions. CEO Satya Nadella framed the changes as necessary to reimagine the company's mission in the AI era, shifting from traditional software to an "intelligence engine" that empowers users to build their own tools.

Amazon In October, Amazon executed its largest-ever corporate layoffs, slashing 14,000 roles. CEO Andy Jassy and senior executives highlighted AI as a transformative technology requiring a leaner organization with fewer management layers. Jassy had warned earlier that AI would reduce the need for certain current jobs while creating demand for new ones.

These examples illustrate a broader trend: companies are restructuring to capitalize on AI's potential for automation and productivity. While short-term job losses are significant, proponents argue that AI will ultimately create new opportunities in emerging fields. Critics, however, warn of deeper disruptions if workforce transitions are not managed carefully.

As 2025 draws to a close, the labor market remains volatile, with AI at the center of ongoing debates about the future of work.

Thank you for subscribing to the Future Download! 

If you need help with your newsletter, email our Arizona-based support team at [email protected]

👩🏽‍⚖️ Legal Stuff
FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT ADVICE. Morning Download products and services are offered for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation or be relied upon as personalized financial advice. We are not financial advisors and cannot give personalized advice.  There is a risk of loss in all trading, and you may lose some or all of your original investment. Results presented are not typical.  This message may contain paid advertisements, or affiliate links.  This content is for educational purposes only.

Please review the full risk disclaimer:  MorningDownload.com/terms-of-use

Just For You: Become part of the Morning Download’s SMS Community. Text “GO” to 844-991-2099 for immediate access to special offers and more!