US sees record layoffs since 2020 as AI reshapes work
What's the story
The United States is witnessing a record wave of job cuts, with the number of layoffs in the first half of 2025 hitting the highest level since the pandemic year of 2020. According to data from outplacement firm Challenger, Gray & Christmas, a staggering 744,308 job cuts have been announced across various sectors. This is the highest number since early 2020 when nearly 1.6 million jobs were lost due to COVID-19 disruptions.
Tech layoffs
Microsoft cuts 9,000 jobs as part of major layoff round
Microsoft announced a major layoff earlier this week, cutting nearly 4% of its workforce, which translates to around 9,000 employees. This comes as the tech giant's second major layoff round this year. The company's restructuring is part of a broader trend across industries with companies like Del Monte, 23andMe, and At Home announcing job cuts amid bankruptcy filings.
Factors influencing layoffs
AI adoption replacing entry-level jobs
The rise in job cuts is also attributed to the growing adoption of artificial intelligence (AI) in businesses. Entry-level and routine jobs are increasingly being replaced by AI, leading to a silent but significant impact on employment. The economic slowdown and unstable financial markets have also contributed to another 154,000 layoffs this year.
Government impact
Federal agencies and tech sectors most affected
Federal agencies have been particularly hard hit by the wave of layoffs in 2025. This is largely due to aggressive cost-cutting measures led by President Donald Trump and Elon Musk's Department of Government Efficiency (DOGE). The tech, retail, media, and non-profit sectors have also witnessed large-scale job losses as part of these restructuring efforts.