Wave of Global Layoffs Blamed on AI Shift and Tariff Costs
Written by AI from gfmag.com's report. Not checked by a person.
Major corporations worldwide have announced sweeping job cuts throughout 2025, with US companies alone shedding more than one million workers in the first ten months of the year, driven by higher costs from US tariffs and a strategic pivot toward artificial intelligence.
2025 is on course to rank among the worst years for job losses this century, comparable only to the 2008–09 financial crisis and the 2020 pandemic. According to The Challenger Report, a leading US labor-market indicator, American companies laid off more than one million employees in the first ten months of 2025 — a 65% rise over the same period in 2024 and the highest total since the pandemic-era recession five years ago.
In October, US job losses reached 153,000, the highest monthly figure since 2003. November offered partial relief, with the country adding 64,000 jobs — more than expected — but the unemployment rate still climbed to a four-year high of 4.6%.
Companies are formally attributing the cuts to higher operating costs caused by US tariffs, though many analysts believe an equally significant motive is redeploying labour budgets toward AI infrastructure. The latest wave hit the technology sector hardest: Intel, Microsoft, IBM, and Verizon together announced more than 50,000 job eliminations, while Amazon cut 30,000 positions and logistics giant UPS let go of 48,000 workers. Accenture trimmed 11,000 roles and Procter & Gamble 7,000.
The pain extended globally. In Europe, Nestlé cut 16,000 jobs, Bosch 13,000, Volkswagen 7,000, and Siemens 5,600. Across Asia-Pacific, India's Tata Consultancy Services dismissed 12,000 employees, Japan's Nissan 11,000, and Australia's ANZ Bank 3,500.
Nvidia CEO Jensen Huang stoked wider concerns by asserting that AI will fundamentally change every job. Meanwhile, Walmart — having already cut 1,500 positions — delisted from the NYSE and moved to the tech-focused Nasdaq, signalling its long-term commitment to AI and warehouse automation.
