AI is leading to thousands of job losses, report finds

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. 

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