As companies across the U.S. expand their use of artificial intelligence, layoffs increasingly cite AI adoption as a contributing factor, according to multiple corporate announcements in recent months. This trend reflects growing pressure on businesses to demonstrate efficiency gains from technology investments while reshaping their workforce structures.
Notable examples include Pinterest and Dow, both of which attributed recent job reductions in part to AI integration. In 2025, businesses specifically mentioned AI in roughly 55,000 job cuts, more than twelve times the figure reported just two years earlier, with the majority concentrated in technology sectors, especially California and Washington.
Economists suggest the effect of AI on the broader labor market remains limited, but for affected employees, the impact is immediate and significant. “Companies are increasingly replacing routine tasks with AI-driven solutions,” said a representative from Challenger, Gray & Christmas, the outplacement and labor research firm that tracks these trends.
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