US Tech Layoffs Reach 94,000 as Companies Embrace AI Solutions

Specialists at Final Round have calculated that during the first half of 2025, American IT companies laid off over 94,000 technical professionals. Analysts point out that this isn’t just another round of cost-cutting; rather, it’s a phase of workforce transformation to align with AI strategies.

Certain roles are being eliminated as AI tools are now able to perform these tasks. Other employees are being let go to allow companies to reallocate funds towards AI development, infrastructure, and research.

In July alone, Microsoft confirmed its plans to cut 9,000 positions, primarily in the gaming and cloud technology sectors. In June, Google dismissed about 25% of its smart TV team, redirecting funds towards projects like Bard and Gemini AI. Bumble announced it would lay off 30% of its global workforce as part of a significant restructuring aimed at enhancing AI-based product development and operational efficiency.

Other companies that have reduced their workforce include Disney, IBM, Amazon, Intel, CrowdStrike, Meta*, Salesforce, and others.

Analysts have identified three key trends driving the layoffs:

1. AI is taking over repetitive tasks. IBM’s internal tools like AskHR have assumed many core HR functions, while CrowdStrike noted that AI enables quicker transitions from ideas to products with fewer personnel.

2. Companies are downsizing teams to fund AI growth. Meta, Salesforce, and Google have shifted budgets from traditional product lines to AI infrastructure, model training, and hiring. Microsoft has publicly stated it is restructuring teams to increase the number of engineers while reducing mid-level management.

3. AI is enabling individuals to achieve more with fewer resources. For instance, tools like Copilot at Microsoft assist in code generation.

The report’s authors also analyzed which positions are being cut first. These include programmers (mainly juniors), HR personnel, customer support staff, copywriters, data analysts, and mid-level managers.

As a result, Silicon Valley alone has seen a reduction of 11,000 jobs.

These layoffs are not driven by a financial crisis; Microsoft, Amazon, and others are posting strong revenues. In the first quarter of 2025, Microsoft reported $70.1 billion in revenue, a 13% increase from the same period the previous year, while cutting over 15,000 jobs.

«Implementing AI is now a core business strategy rather than a side project. Companies are demonstrating that they can grow while reducing headcount. They do not intend to reinstate these roles,» the report indicates.

According to the authors, tech professionals must determine how to adapt to this new reality. «The safest approach is to develop skills that AI cannot replicate, such as strategic thinking, interpersonal communication, complex decision-making, and the ability to lead mixed teams of AI and humans or oversee them,» analysts suggest. They also emphasize the importance of learning to utilize AI effectively.

«Companies are not slowing down their investments in AI; they are accelerating them. Budgets are being shifted from human resources to machine intelligence. This is not temporary. Companies do not plan to rehire these individuals. They are using the funds saved to invest in more AI systems. You have two options: learn to work with AI or risk being replaced by it. Companies have already made their decision,» conclude the report’s authors.

Meanwhile, the Polish research institute NASK has launched a site where individuals can assess how susceptible each profession is to the influence of artificial intelligence. The platform analyzes over 2,500 occupations and nearly 30,000 tasks.

*Meta Platforms is classified as extremist, and its activities in Russia are banned.