The wave of mass layoffs in 2025 continues across the United States, with Artificial Intelligence (AI) cited as a leading reason for job reductions. As companies prioritise AI automation, digital transformation, and cost efficiency, thousands of employees across various sectors, including tech, retail, finance, and manufacturing, are being laid off.
According to a recent Business Insider report, some of the biggest names in U.S. industry are reshaping their workforces, citing a “once-in-a-lifetime reinvention” of how work is done. Below is a full list of major U.S. companies cutting jobs in 2025 due to AI and automation.
1. Intel—Up to 10,000+ Job Cuts Expected in Foundry Division
Intel is implementing one of the largest layoffs in its history. The chip giant is reducing 15% to 20% of its Intel Foundry Services workforce beginning in July 2025.
- Estimated Impact: Over 10,000 employees globally
- Reason: AI-driven efficiencies and performance-based restructuring
- Details: No voluntary buyouts or early retirement options will be offered
2. CrowdStrike – 5% Workforce Reduction Due to AI Efficiencies
Cybersecurity firm CrowdStrike is laying off around 500 employees, which amounts to 5% of its global workforce.
- Reason: CEO George Kurtz cited “AI efficiencies” and automation
- Impact Areas: Operational, technical, and support teams
3. Amazon – AI to Replace and Reshape Workforce Over Time
Amazon CEO Andy Jassy has acknowledged that generative AI and autonomous agents will significantly reduce the company’s workforce over the next few years.
- Layoff Details: Exact figures undisclosed
- Key Insight: AI will replace some existing roles but also create new AI-focused jobs
- Affected Divisions: Expected across logistics, customer service, and tech teams
4. Block (formerly Square)—Nearly 1,000 Jobs Eliminated
Jack Dorsey’s Block Inc., the parent company of Cash App, Square, Tidal, and Afterpay, announced another round of layoffs.
- Jobs Cut: Close to 1,000 roles eliminated
- Additional Cuts: 800 open roles cancelled, 200 managers reassigned to non-leadership roles
- Reason: Company-wide restructuring for efficiency
5. Meta (Facebook)—Performance-Based Layoffs Accelerate
Meta has continued trimming its workforce in early and mid-2025, focusing on performance-based criteria.
- Affected Units: Facebook, Reality Labs, Horizon VR
- Internal Changes: Restructuring within the metaverse division
- Reason: AI-related role shifts and stricter performance policies
6. Microsoft – Layoffs Across Gaming and Sales Divisions
In January 2025, Microsoft initiated layoffs across several departments, including gaming, sales, and cloud services.
- Reason: Performance-based, with no severance or post-layoff benefits reported
- Context: Aligning workforce with long-term AI investments
7. Walmart—Cuts in Tech and E-Commerce Amid AI Push
Though not a tech firm by nature, Walmart has been investing heavily in AI for logistics, analytics, and advertising.
- Jobs Cut: Around 1,500 employees in May 2025
- Divisions Affected: Global tech, Walmart Connect (advertising), fulfillment centers
- Reason: Streamlining operations via AI and machine learning
8. IBM – 8,000 Jobs Eliminated in HR and Admin Functions
IBM laid off approximately 8,000 workers in May 2025, focusing on human resources and administrative divisions.
- Reason: Strategic workforce realignment tied to AI integration
- Insight: Shift toward AI-automated HR processes and digital reorganization
AI’s Role in 2025 Layoffs: A Paradigm Shift in Workforce Structure
The common thread among these job cuts is clear: AI is reshaping the global workforce. Companies are increasingly relying on automation, machine learning, and AI-powered business models to boost productivity and cut operational costs.
“This is not just about reducing headcount. It’s about redefining how companies operate in an AI-first world,” says a senior analyst at Business Insider.
