US job cuts reach record high since 2020

Business Jul 04, 2025

Job losses in the US have spiked, with over 744,000 positions cut in just the first half of 2025—the biggest jump since 2020.
The main reasons? Big federal downsizing led by Elon Musk's Department of Government Efficiency (DOGE) and companies like Microsoft restructuring around artificial intelligence.

How DOGE and AI are affecting jobs

AI is shaking up workplaces everywhere—Microsoft now uses AI for up to a third of its coding after investing $80 billion last year.
At the same time, DOGE's cost-cutting has slashed nearly 287,000 federal jobs, hitting agencies like Health and Human Services.
Add in an economic slowdown and trade tensions, and even more sectors—from tech to retail—are feeling the pinch.