AI is already causing tens of thousands of layoffs in the U.S. job market, according to a new report. According to executive outplacement firm Challenger, Gray & Christmas, AI is reshaping the technology sector, causing a 36 percent increase in job cuts for that industry.
The rising usage of AI technology by private employers resulted in more than 10,000 job cuts in July alone, according to a report released by Challenger, Gray & Christmas, which cites AI as one of the top five factors contributing to job losses this year.
The executive outplacement firm says “technological updates” involving “automation and AI implementation” have resulted in “20,219 job cuts in 2025,” with another 10,375 explicitly stemming from AI implementation, “suggesting a significant acceleration in AI-related restructuring.”
“Technology is the leading private sector in job cuts, with 89,251 in 2025,” Challenger, Gray & Christmas said, noting that is a 36 percent increase from the 65,863 job cuts tracked through July 2024.
“The industry is being reshaped by the advancement of artificial intelligence and ongoing uncertainty surrounding work visas, which have contributed to workforce reductions,” the firm added.
Hiring announcements, meanwhile, have remained below pre-pandemic levels, with U.S.-based employers looking to add 86,132 jobs through July 2025, compared to 73,596 through the same period in 2024, Challenger, Gray & Christmas said.
Breitbart News previously reported on AI’s impact on entry-level professionals fresh out of college:
According to data from the Burning Glass Institute, the share of graduates in the labor force with a bachelor’s degree one year after graduation has dropped, deviating from historical patterns. The decline is not limited to a specific field — majors ranging from visual arts to engineering are feeling the pinch. Unemployment among recent college graduates is rising faster than for those with only a high school diploma or associate’s degree.
Employers are openly acknowledging the shift. At Chicago-based Hirewell, marketing clients have largely stopped requesting entry-level staff, opting instead for AI solutions. “Having a good job ‘guaranteed’ after college — I don’t think that’s an absolute truth today any more,” said Bill Balderaz, CEO of consulting firm Futurety, who chose not to hire a summer intern this year, preferring to use AI for social media tasks.
In the meantime, the number of applications per job has shot up 30 percent, while there has been a 400 percent increase in companies using “AI” in their job descriptions over the past two years.
As Breitbart News reported, Anthropic CEO Dario Amodei, who leads one of the world’s most powerful AI companies, is warning that AI could end up causing a mass elimination of jobs in technology, finance, law, and consulting, among other professions, as well as wipe out half of all entry-level white collar jobs.
Amodei said AI companies and the U.S. government need to stop “sugar-coating” what will happen next, which he says could lead to a 10 to 20 percent spike in unemployment in the next one to five years.
“We, as the producers of this technology, have a duty and an obligation to be honest about what is coming,” Amodei told Axios in May. “I don’t think this is on people’s radar.”
Alana Mastrangelo is a reporter for Breitbart News. You can follow her on Facebook and X at @ARmastrangelo, and on Instagram.
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