In July, US companies experienced a new wave of layoffs. According to a recent report from an American career consulting firm, the number of layoffs announced by US companies that month exceeded 60,000, more than double the figure for the same period last year. This wave of layoffs is attributed to multiple factors, including artificial intelligence (AI) and tariff policies.
A report published by CBS News in the United States suggests that Artificial Intelligence (AI) technology is among the top five contributing factors to job losses in American companies this year. The report states that over 27,000 positions have been directly displaced due to the rise of AI since 2023. In July alone, over 10,000 jobs in the U.S. private sector were cut due to the accelerated adoption of AI technology.
Screenshot of a report from the website of CBS News (American Broadcasting Company)
Data shows that, as of July, US companies have announced more than 800,000 private sector job cuts, the highest for the same period since 2020. The technology sector has been particularly hard hit, with nearly 90,000 job cuts, a year-on-year increase of 36%.
Several major US tech companies have recently announced layoff plans: Intel announced it will cut 15% of its workforce; Microsoft, despite positive performance, initiated a second round of layoffs this year, expected to affect 9,000 employees. Analysts believe these companies are controlling costs through layoffs while increasing investment in AI.
Screenshot of a report from CNBC (Consumer News and Business Channel)
The report analyzes how the rapid advancement of artificial intelligence and the uncertainty surrounding work visa policies are reshaping the employment landscape, with young job seekers disproportionately affected. Over the past year, US companies have seen a 15% decrease in entry-level job postings for recent graduates, while postings mentioning “artificial intelligence” have surged by 400%, highlighting a structural shift in skills demand.
Screenshot of a report from the website of the American Broadcasting Company (ABC)
Beyond the impact of AI, over 292,000 jobs have been eliminated this year due to federal spending cuts, affecting government agencies, non-profit organizations, and the healthcare sector.
Simultaneously, the U.S. government’s tariff policies have accelerated job cuts in the retail sector. Reports indicate that retailers announced the elimination of over 80,000 jobs by July, a surge of nearly 250% year-over-year. The report also warns that the latest tariff policies could lead to price increases, reduced product availability on shelves, and further job losses.
Screenshot of a report from CNBC (Consumer News and Business Channel)
Compiled by Wang Huanxing