Artificial intelligence fuels wave of layoffs in the US, report reveals

The US labor market is undergoing an unprecedented transformation. A new report from Challenger, Gray & Christmas, cited by CBS News, warns that artificial intelligence (AI) has become one of the main factors behind a growing wave of mass layoffs. In July alone, more than 10,000 jobs were eliminated as a direct consequence of the adoption of automated technologies.

This figure is just one reflection of a broader picture: so far in 2025, more than 806,000 layoffs have been reported in the private sector, the highest number since the 2020 health crisis.

The technology industry leads the way in job cuts, with more than 89,000 layoffs through July. This represents a 36% increase compared to the same period last year.

The report identifies at least 27,000 layoffs directly related to the implementation of AI in business processes. Automation, far from being a future process, is already reshaping human work.

In addition to AI, uncertainty regarding work visas exacerbates the situation. The tech industry, historically dependent on international talent, faces obstacles in retaining its foreign workers.

"The combination of advances in AI and restrictive immigration policies is limiting companies' ability to sustain jobs," the report highlights.

A complementary study by Handshake reveals a 15% drop in entry-level job postings. Companies are demanding new skills, especially those related to AI, widening the gap between young graduates and the market.

Since 2023, job postings mentioning "artificial intelligence" have increased by 400%, demanding new skills in careers that previously didn't require them.

More than 292,000 public sector jobs have been lost under the Department of Government Efficiency (DOGE), which aims to reduce federal spending.

Nonprofit organizations, healthcare institutions, and government agencies have been particularly affected. Andrew Challenger, vice president of the firm, warns of "a domino effect with profound social and health impacts."

The report also reveals that the retail sector has laid off more than 80,000 workers through July, a 250% increase compared to 2024.

Factors such as inflation, tariffs, and declining consumer spending are leading to massive store closures and staff reductions.

The wave of layoffs can't be explained by AI alone. Other factors that come into play are:

• Global trade tensions,
• The restructuring of public spending, and
• The evolution of business expectations regarding human talent.

AI is not just a tool: it's a catalyst for structural change. While it can create new opportunities, the short term seems marked by job displacement, especially in vulnerable sectors or those with low technological adaptation.

This report serves as a warning. Artificial intelligence is generating efficiency, but also inequality. Sectors lacking technological preparation face the greatest risk. Are we ready for a massive job restructuring? While some adapt to the new paradigm, thousands are losing their jobs without a clear safety net.