Wave of layoffs at U.S. tech companies over AI

Since the beginning of the year, US tech companies have laid off 94,000 employees and replaced them with AI.

Final Round experts estimate that in the first half of 2025, US IT companies laid off more than 94 thousand technical specialists. As analysts note, this is not just another round of cost optimization, but a stage of workforce transformation to meet AI strategies.

Some positions are being eliminated because AI tools can now get the job done. Other workers are being laid off so companies can redirect spending on AI development, infrastructure and research.

In July alone, Microsoft confirmed plans to cut 9,000 positions, mostly in gaming and cloud technology. In June, Google laid off about 25% of its smart TV team while increasing funding for its Bard and Gemini AI projects. Bumble, on the other hand, said it will lay off 30% of its global workforce as part of a major restructuring. The company will refocus on AI-based product development and operational efficiency.

Disney, IBM, Amazon, Intel, CrowdStrike, Meta, Salesforce, etc. were among the other companies that cut employees.

Analysts identified three main trends in layoffs:

• AI is replacing repetitive tasks. At IBM, internal tools such as AskHR have taken over most core HR functions, while CrowdStrike said AI allows it to move faster from idea to product with fewer people;
• Companies are cutting teams to fund AI growth. Meta, Salesforce and Google have redirected budgets from traditional product lines to AI infrastructure, model training and hiring. Microsoft has publicly stated that it is changing its team structure, increasing the number of engineers and cutting middle managers;
• AI helps people do more with less. For example, at Microsoft, tools like Copilot help generate code.

The authors of the report also analyzed which positions are being cut first of all. These are programmers (mainly Junes), human resources, customer support staff, copywriters, data analysts, and middle managers.

As a result, 11,000 jobs have been cut in Silicon Valley alone.

These layoffs are not due to the financial crisis. Microsoft, Amazon and others are posting strong earnings. In the first quarter of 2025, Microsoft reported revenue of $70.1 billion, which is 13% more than in the same period last year, analysts emphasize. At the same time, the company cut more than 15,000 jobs.

AI adoption is now a business strategy, not a side project. Companies are showing they can grow by downsizing. They have no plans to bring those roles back.

the report’s authors write.

In their opinion, tech experts need to decide how to adapt to the new reality.

The safest option is to develop skills that AI cannot replicate. These include strategic thinking, interpersonal communication, complex decision-making and the ability to lead or control mixed teams of AI and humans.

the analysts said.

Learning how to use AI effectively is also important, they said.