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Big Tech Uses AI as an Excuse to Fire Thousands
- Big tech companies such as Microsoft, IBM, Chegg, Workday, CrowdStrike, PwC, and Klarna are attributing layoffs to AI in 2025.
- Layoffs.fyi reports over 50,000 tech employees have been laid off this year, with Microsoft eliminating around 3% of its workforce, affecting approximately 6,000 employees.
- Some believe AI-driven efficiency is leading to layoffs, while others suggest the cost of building AI infrastructure is driving companies to reduce headcount.
- Google and Meta have also announced layoffs, with Google cutting roles in its Platforms and Devices unit, and Meta focusing on performance-based cuts and internal restructuring.
- Companies like PwC are citing overhiring during the pandemic and a shift towards automation for reducing jobs, leading to 1,500 job cuts across the US.
- IBM replaced 200 human resources workers with AI agents, leading to an expansion in its workforce for hiring more programmers and sales personnel.
- Chegg plans to lay off 248 employees to reduce expenses, while Duolingo is phasing out human contractors with an 'AI-first' approach for expanding language course offerings.
- AI is seen automating tasks such as coding, customer service, and data analysis, potentially impacting jobs that once required human labor.
- Despite AI's impact, analysts believe big tech companies might be using AI as a pretext for layoffs driven by other strategic or financial motives.
- Klarna, after relying heavily on AI for customer service, aims to reintroduce human agents, acknowledging the negative impact of over-reliance on AI in customer interactions.
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