Artificial Intelligence is reshaping the global workforce and its impact on tech workers in 2025 has been both good and bad. On one hand, machine learning and AI tools are helping workers become more productive. On the other hand, the same pressure toward automation continues to take over jobs. According to data from Layoffs.fyi, 122,549 tech workers have been laid off from 257 technology companies so far this year. Of these, based on data from Challenger, Gray and Christmas cited by CNBC, more than 54,000 job cuts in the US have been directly attributed to AI.

The data clearly indicates how AI alone is making automation one of the biggest drivers of workforce reductions in 2025. And while big tech names like Google, Microsoft, Meta and others have continued to make small, steady cuts throughout the year, companies like Amazon, Microsoft and Salesforce have recently pushed deeper layoffs as part of a broader effort to automate large portions of their operations and improve efficiency.

So what’s actually happening in the tech sector as AI takes center stage? Here the story is told in five major points.

Point 1: AI is replacing and reshaping jobs

Silicon Valley is firmly at the center of an AI-driven shake-up. Tech companies are increasingly deploying generative AI and automation tools to handle tasks that were once performed by humans. These include tasks including coding assistance, customer support, data analysis, and internal operations. And the reason for this automation is simple. Companies are aiming to improve workflow efficiency and productivity.

According to Challenger, Gray & Christmas, total US job cuts are projected to reach 1.17 million in 2025, the highest level since 2020, with AI-led efficiency drives emerging as a major contributing factor. The numbers clearly show that automation is no longer a side experiment. Instead it is now at the center of how companies are restructuring their workforce.

An MIT study published in November found that AI could already replace 11.7 percent of US jobs and potentially save $1.2 trillion in wages in sectors such as finance, health care and professional services. While new AI-focused roles are being created, the proportion of these new emerging jobs is still not high enough to balance the speed at which traditional roles are being displaced.

Point 2: At Microsoft, AI is becoming the core of every role

One of the biggest tech companies that is reshaping its workforce through major adoption of AI this year is Microsoft. The company has already laid off about 15,000 through several rounds of cuts in 2025.
Julia Liuson, president of Microsoft’s developer division, even told managers that AI adoption should now be included in performance evaluations, making it clear that “AI use is no longer optional, but rather core to every role and every level.”

Microsoft is also exploring AI as a metric for employee evaluation. It won’t be able to see how its employees are using AI tools like Copilot to improve efficiency. Moving forward, Microsoft’s message to employees is clear—adapt fast, as automation becomes deeply embedded in teams and day-to-day work.

Point 3: Amazon is a more willing team for an AI-first future

This year, Amazon has reportedly laid off more than 14,000 employees, of which about 40 percent are affected engineers. The reason behind these cuts is being linked to the company’s aggressive stance towards automation. Senior vice president Beth Galetti has described AI as “the most transformative technology we’ve seen since the Internet,” while CEO Andy Jassy warned employees that the rise of AI will mean “some of the jobs that are being done today will be done by fewer people.”

Amazon’s leadership is introducing these cuts as part of a long-term shift toward efficiency. The company expects AI to automate routine processes, creating demand for a small pool of highly specialized roles focused on building, managing, and scaling these automated systems.

Point 4: Salesforce is Automating Customer Support

Meanwhile, at Salesforce, AI has directly replaced thousands of roles. CEO Marc Benioff confirmed that 4,000 customer support jobs were eliminated in September 2025, adding that AI now handles up to 50 percent of the company’s workload.

“I’ve reduced it from 9,000 heads to about 5,000 because I need less heads,” Benioff said, underscoring how deeply automation is now embedded in Salesforce’s day-to-day operations.

Point 5: AI spreads across layoff industries

The impact of AI is not limited to big tech. Companies like Oracle, CNN, Dropbox, Block, and Workday have announced AI-related layoffs, while brands like Adidas have also cut roles beyond the technology sector. According to the World Economic Forum, 41 percent of companies globally expect to reduce their workforce over the next five years due to AI.
While demand for AI, data and fintech roles is expected to grow through 2030, 2025 is shaping up to be a clear turning point, where automation-driven efficiency is growing faster than workforce re-skilling efforts.