Firms now more vocal with claims that Al is the reason for job cuts

For much of the AI boom, many companies shied away from attributing job cuts to AI for fear of attracting negative headlines.

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There is debate over whether firms are seizing on advances in artificial intelligence to keep costs low in an uncertain global economy, or simply citing AI as a factor to explain away job cuts being made for more complex and possibly unflattering reasons in terms that appeal to investors. The answer may be a bit of both.

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But in recent months, large firms across industries and geographic regions have become more vocal with claims that AI is allowing them to eliminate staff and reduce hiring.

In earnings reports, investor presentations and company memos, executives have been touting efficiency gains from Al and framing a shrinking or flat workforce as preparation for an increasingly Al-driven economy.

Al has been cited for 48,414 job cuts announced in the US so far in 2025, according to a recent estimate from outplacement firm Challenger, Gray & Christmas. Of those, 31,039 Al-related job cuts were announced in October alone.

The sudden uptick mirrors a sharp rise in planned layoffs generally, with AI referenced as a factor in roughly a fifth of the total in the US in October. It has ignited a debate over whether companies are seizing on advances in AI to keep costs low in an uncertain global economy, or simply citing AI as a factor to explain away cuts being made for more complex and possibly unflattering reasons in terms that appeal to investors. The answer may be a bit of both.