AI layoffs in 2025 have officially crossed 50,000 jobs. Amazon cut 14,000 roles. Microsoft eliminated 15,000. Intel slashed 25,000. And nearly every company cited AI as the reason.
But here’s what the headlines aren’t telling you: according to Forrester Research, half of those workers will be quietly rehired. Just offshore. At lower salaries.
The quick answer: Companies blamed AI for 55,000 layoffs in 2025, but many are cutting workers for AI capabilities that don’t exist yet. Forrester predicts 50% of these roles will be rehired offshore in 2026. If you’re worried about your job, the real threat might not be robots — it’s cheaper labor dressed up as automation.
The AI Layoffs 2025 Numbers
According to consulting firm Challenger, Gray & Christmas, AI was responsible for nearly 55,000 layoffs in the U.S. this year. That’s part of 1.17 million total job cuts — the highest level since the COVID-19 pandemic in 2020.
CNBC reports the major players making AI-attributed cuts include:
Amazon: 14,000 corporate roles cut in October — the largest layoff in company history. The company said it wants to invest in its “biggest bets,” which includes AI.
Microsoft: 15,000 total cuts across the year. 9,000 in July, 6,000 in May.
Intel: 24,000-25,000 jobs globally (15% of staff), with 529 positions cut in Oregon alone.
Workday: 1,750 jobs (8.5% of workforce) in February, explicitly citing AI investment.
The Dirty Secret: AI Isn’t Ready Yet
Here’s where the story gets uncomfortable.
According to Forrester Research’s Predictions 2026 report, many companies are laying off workers for AI capabilities that don’t exist yet. They’re betting on future promises rather than proven technology.
The report documents real failures. Klarna replaced 700 customer service employees with AI. Quality declined. Customers revolted. The company had to rehire humans.
55% of employers now report regretting AI-related layoffs. But instead of admitting the mistake, many are hiring offshore replacements at lower salaries.
What Forrester Predicts for 2026
Forrester’s prediction is stark: half of AI-attributed layoffs will be quietly rehired, but offshore or at significantly lower salaries.
This pattern — laying off workers for AI that isn’t ready, then hiring cheaper offshore replacements — will accelerate across industries in 2026.
The AI branding gives companies cover. “We’re investing in AI” sounds better than “we’re cutting costs by offshoring.”
What This Means for Your Career
If you’re worried about AI taking your job, here’s the more nuanced reality:
The threat is real, but often overstated. Companies are using “AI” as a catch-all excuse for cost-cutting that has nothing to do with automation.
AI readiness is still low. Only 16% of workers had high “AIQ” (AI readiness) in 2025. That number is expected to reach just 25% by 2026. The AI-powered workplace is coming slower than headlines suggest.
Learning AI tools helps, but isn’t a guarantee. The workers most at risk aren’t necessarily those who don’t know AI — they’re those whose roles can be done cheaper elsewhere, regardless of automation.
Watch for “AI-washing.” When a company announces layoffs “due to AI investment,” be skeptical. The real story is often simpler cost-cutting with better PR.
The Industries Most Affected
According to TechCrunch’s layoff tracker, 716 tech companies made cuts in 2025, affecting over 209,000 people.
The hardest-hit areas:
Customer service: The most obvious target for AI chatbots, though quality issues persist.
Content moderation: Social media companies are replacing human moderators with AI systems.
Software development: Coding assistants are reducing the need for junior developers, though senior roles remain in demand.
Data entry and processing: Routine tasks are increasingly automated.
The Honest Take
AI is genuinely changing the job market. That’s not hype. But the 2025 layoff numbers are being inflated by companies using AI as convenient cover for traditional cost-cutting.
The uncomfortable truth is that “we’re investing in AI” is a better story than “we’re offshoring to save money.” Both are happening. The AI narrative just makes one of them invisible.
If you want to protect your career, learning AI tools is valuable. But so is understanding that not every “AI layoff” is actually about AI.
Common Questions About AI Layoffs 2025
Will AI take my job in 2026?
It depends on your role. Routine, repetitive tasks are most at risk. Creative, strategic, and relationship-based work is harder to automate. But the bigger threat for many workers is offshoring, not AI.
Are the AI layoff numbers accurate?
The 55,000 figure counts layoffs where companies cited AI. But many of these cuts are traditional cost-cutting with AI branding. The real AI-driven displacement is likely lower.
What skills should I learn to stay employable?
AI tool proficiency helps, but focus on skills AI struggles with: complex problem-solving, emotional intelligence, creative thinking, and work that requires physical presence or human judgment.
Related Reading
Want to understand how AI is changing work? Check out these articles:
AWS CEO: Replacing Junior Employees with AI Is ‘Dumb’ — A tech leader pushes back on AI layoffs
AI Life 2026: Tailor Your Resume for Every Job — Use AI to strengthen your job search
Start Here — New to AI? Learn how to use it in your daily life.
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