Layoffs in 2025: AI-Driven Job Cuts Surge as Companies Like Amazon Trim Workforce Ahead of 2026
Layoffs in 2025 surged as companies adopted AI to boost efficiency, leading to widespread job cuts across sectors. Firms like Amazon reduced their workforce significantly, while market reactions signal growing investor scrutiny. As AI adoption rises in 2026, experts predict further restructuring, making workforce planning and communication crucial for businesses.
Mumbai, December 26: 2025 is about to end and before 2026 begins, hundreds more employees are likely to be laid off. This year has been dominated by artificial intelligence across many sectors, boosting company performance while contributing to job losses. AI implementation is expected to increase next year, causing some roles to become permanently redundant.
According to layoffs-tracking website Layoffs.Fyi, 1,22,549 employees lost their jobs across 257 companies in 2025. The numbers are lower compared to 2024, when 1,52,922 employees were laid off from 551 companies. Even after trimming their workforce through AI adoption, restructuring, or focusing on growth areas, companies continue to announce sporadic layoffs, keeping the job market tense. Mustafa Suleyman Warning: Microsoft AI CEO Says Hundreds of Billions Are at Stake in Global AI Race.
Layoffs in 2025 Due to AI
AI-driven layoffs have become a reality, and recently Goldman Sachs offered predictions for 2026. The global investment bank said that the era of Wall Street companies cutting staff in the name of AI would likely come to an end. Investors are now reacting negatively to layoff announcements, even when framed as strategic automation moves.
The trend indicates a broader change in corporate behaviour, as firms may now think twice before framing layoffs as part of an AI-driven efficiency strategy. Executives are expected to approach workforce planning with more caution, balancing automation with retention strategies. This shift could reshape how companies communicate about AI and its impact on employment in 2026. Gmail Username Change Update: Google Reportedly Working on Feature To Let Users Modify Primary Email Address.
Amazon is set to cut 370 jobs at its Luxembourg headquarters, representing about 8.5% of its local workforce. Originally planning 470 layoffs, the number was reduced after negotiations with employee representatives, following EU labor rules. The move, part of Amazon’s global strategy to streamline operations and increase AI use, marks the largest workforce reduction in Luxembourg in over 20 years. Other companies, including Meta, Intel, Dell, Microsoft, and Google, have also laid off numerous employees.
(The above story first appeared on LatestLY on Dec 26, 2025 03:30 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).