The United States job economy is currently struggling. According to the most recent data from Challenger, Grey & Christmas, firms in the United States have reported 6,96,309 job cutbacks, a rise of 80 per cent over the 3,85,859 announced in the first five months of last year.
According to the report, it is 65,049 cuts away from reaching the figure for the year 2024.
This increase in layoffs is ascribed to the introduction of AI, which has emerged as a major disruptor in the tech industry. Many companies, including Amazon and Google, have announced that layoffs are unavoidable.
The report states that technology remains the leading industry for job losses as it faces significant and fast-changing disruptors like the adoption of Artificial Intelligence (AI).
In May, tech companies announced 10,598 job cutbacks, bringing the total number of cuts to 74,716 by 2025. This is a 35 per cent increase over the 55,207 cuts disclosed during the same period the previous year.
"Technological Updates, including those related to AI implementation, led to 20,000 job cuts so far in 2025," the report states.
Amazon CEO Andy Jassy recently hinted at layoffs in light of the global AI boom in recent years. Jassy agreed that when Amazon uses Generative AI to increase productivity, the company will require fewer employees.
Microsoft is rumoured to have cut off approximately 6,000 individuals in May, as well as two rounds of layoffs in June. According to The Information, the Google TV team laid off 25 per cent of its employees in April.