AI-driven automation, shrinking consumer demand and slowing growth push global layoffs to a post-pandemic high, with over 1.17 million jobs lost worldwide in 11 months.
Washington: Standing at the edge of 2025, the global economy appears to be trapped in a fresh vortex of uncertainty that economists are calling a 'restructuring recession'. Fueled by AI-driven automation, workforce redundancies, sluggish growth and cost-cutting across unpredictable markets, the wave of layoffs sweeping the world has become the worst since the pandemic.
Between January and November, more than 4,200 major layoff events worldwide resulted in nearly 1.17 million people losing their jobs. Not since the COVID-19 shock in 2020—when roughly 2.2 million people were rendered jobless—has the world seen job losses on this scale.
Experts point to AI-dependent automation as the core driver of this crisis. With rapid advances in artificial intelligence reshaping workflows across industries, companies are restructuring teams at an unprecedented pace. Powerful coding assistants have reduced the need for large developer teams, while generative AI tools are taking over content production tasks. From customer service to data analysis, machine-led processes are replacing human roles across countless departments.
The technology sector has faced the sharpest blow. In 2025 alone, at least 683 tech companies around the world initiated large-scale layoffs, eliminating close to 200,000 jobs. On average, more than 600 tech employees lost their jobs every single day this year.
Beyond tech, retail and warehousing operations have also been battered. With consumer spending declining and the e-commerce market turning volatile, layoffs in Western economies have surged. In the United States, retail sector layoffs have risen an alarming 145%, according to the International Labour Organization (ILO), which also reports a 12% rise in unemployment across advanced economies.
The most severe crisis, however, has unfolded in the United States. Until October, the country recorded 1.099 million job losses—a 65% increase from 2024. November alone saw an additional 71,000 layoffs. Shockingly, the biggest hit came from the public sector, with 307,638 government positions abolished—marking the largest public-sector downsizing in US history. These cuts were executed under the government’s Department of Government Efficiency Initiative.
In the American tech industry, 141,159 jobs have been lost so far, including 33,000 in October alone. Giants like Google, Microsoft and Intel have leaned heavily on AI deployment to build what they describe as “leaner and smarter” teams. Retail downsizing stands at 88,664, while the financial sector eliminated 48,968 jobs amid high interest rates and a slowdown in deal activity.
India, too, is witnessing silent but steady retrenchment. Reduced IT project pipelines, shrinking demand from foreign clients and a funding crunch in the startup ecosystem have forced companies to push employees into so-called “voluntary exits.” Overexpansion and liquidity challenges have further triggered widespread job cuts in the startup space.
As the world steps toward 2026, a critical question looms: Is AI taking away human jobs, or paving the way for newer skills and industries? The answer remains uncertain. What is clear, however, is that the global labour market is living through one of the most turbulent chapters in modern history.
Between January and November, more than 4,200 major layoff events worldwide resulted in nearly 1.17 million people losing their jobs. Not since the COVID-19 shock in 2020—when roughly 2.2 million people were rendered jobless—has the world seen job losses on this scale.
Experts point to AI-dependent automation as the core driver of this crisis. With rapid advances in artificial intelligence reshaping workflows across industries, companies are restructuring teams at an unprecedented pace. Powerful coding assistants have reduced the need for large developer teams, while generative AI tools are taking over content production tasks. From customer service to data analysis, machine-led processes are replacing human roles across countless departments.
The technology sector has faced the sharpest blow. In 2025 alone, at least 683 tech companies around the world initiated large-scale layoffs, eliminating close to 200,000 jobs. On average, more than 600 tech employees lost their jobs every single day this year.
Beyond tech, retail and warehousing operations have also been battered. With consumer spending declining and the e-commerce market turning volatile, layoffs in Western economies have surged. In the United States, retail sector layoffs have risen an alarming 145%, according to the International Labour Organization (ILO), which also reports a 12% rise in unemployment across advanced economies.
The most severe crisis, however, has unfolded in the United States. Until October, the country recorded 1.099 million job losses—a 65% increase from 2024. November alone saw an additional 71,000 layoffs. Shockingly, the biggest hit came from the public sector, with 307,638 government positions abolished—marking the largest public-sector downsizing in US history. These cuts were executed under the government’s Department of Government Efficiency Initiative.
In the American tech industry, 141,159 jobs have been lost so far, including 33,000 in October alone. Giants like Google, Microsoft and Intel have leaned heavily on AI deployment to build what they describe as “leaner and smarter” teams. Retail downsizing stands at 88,664, while the financial sector eliminated 48,968 jobs amid high interest rates and a slowdown in deal activity.
India, too, is witnessing silent but steady retrenchment. Reduced IT project pipelines, shrinking demand from foreign clients and a funding crunch in the startup ecosystem have forced companies to push employees into so-called “voluntary exits.” Overexpansion and liquidity challenges have further triggered widespread job cuts in the startup space.
As the world steps toward 2026, a critical question looms: Is AI taking away human jobs, or paving the way for newer skills and industries? The answer remains uncertain. What is clear, however, is that the global labour market is living through one of the most turbulent chapters in modern history.
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