Despite promises that AI will create more jobs, 1.2 million jobs were actually slashed last year—a grim throwback to losses from the 2008 financial crisis

Core Insights - Tech leaders advocate for AI as a transformative force for society, promising enhanced productivity and new job creation, yet many workers express concerns over job security due to automation [1] Job Cuts Overview - In 2025, a total of 1.2 million job cuts were reported, marking a 58% increase from approximately 760,000 layoffs in 2024, representing the highest level of workforce reductions since 2020 [2] - The tech industry experienced significant layoffs, with about 154,000 roles cut, a 15% increase from nearly 134,000 in 2024, largely attributed to rapid AI implementation and corrections from pandemic-era overhiring [4][5] Sector-Specific Impacts - Federal workers were the most affected, with around 308,000 government jobs eliminated due to extreme cost-cutting measures [3] - The tech sector's job losses were primarily driven by AI advancements, with AI linked to 54,836 layoff plans in 2025 and 71,825 job cut announcements since 2023 [4] Company Actions - Microsoft announced layoffs of 6,000 employees in May and an additional 9,000 in July, with AI now responsible for writing 20% to 30% of its code, prompting an $80 billion investment in AI infrastructure [6] - Meta also reduced its workforce by 5%, impacting around 3,600 employees, as part of a strategy to expedite the removal of low-performing staff [6]