AI has been the sixth most-cited reason for U.S. job cuts so far in 2025, but the No. 2 cause of layoffs in October, Challenger, Gray & Christmas found.
The technology has been responsible for 48,414 staff reductions this year, including 31,039 in October alone, according to the executive outplacement firm’s Nov. 6 report. The Department of Government Efficiency has been the leading cause of employment cuts in 2025, followed by market and economic conditions, closings, restructurings, cost-cutting, and AI.
The 153,074 layoffs in October mark the highest total since October 2003, when widespread cellphone adoption altered the telecommunications sector. “Like in 2003, a disruptive technology is changing the landscape,” the report noted.
Health system leaders have told Becker’s they expect AI to continue to replace call center and revenue cycle roles though not clinical positions.
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