US Companies Cut Tens of Thousands of Jobs Amid AI Adoption and Cost Cuts

American companies have laid off thousands of employees as part of technological optimization and the growing adoption of artificial intelligence, according to a study by Challenger, Gray & Christmas cited by RIA Novosti.

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Job Cuts Accelerate Across Key Sectors

By the end of 2025, more than 75,000 workers had lost their jobs. The largest number of layoffs over the year occurred as part of efforts to optimize government spending, which resulted in 293,753 job losses.

Market conditions also ranked among the leading causes of workforce reductions, leaving 253,206 employees without work.

AI and Post-Pandemic Hiring Reversal

In an effort to cool the labor market, major US corporations decided to cut 52,000 jobs. Workforce reductions have affected nearly all large companies, from Amazon to UPS.

According to analysts cited by the Financial Times, companies continue to reduce headcount in order to reverse the hiring boom triggered by the pandemic. During COVID-19 restrictions, firms rapidly expanded their workforces, but economic uncertainty and growing risks linked to artificial intelligence are now driving layoffs.

Federal Reserve Sees Unusual Labor Market Balance

Earlier, Federal Reserve Chair Jerome Powell said the US labor market appears to be in balance, calling it an unusual equilibrium resulting from a noticeable slowdown in both labor demand and supply.

Powell noted that the stability of unemployment levels and other labor market indicators allows policymakers to consider interest rate cuts.