US tech layoffs rise in 2025 as companies redirect budgets to AI

US tech companies cut at least 94,046 jobs from January through August, according to Crunchbase News, up 16.8% from 80,486 layoffs in the same period a year earlier.

Many of the reductions were linked to companies reallocating budgets toward artificial intelligence initiatives while restructuring operations to lower costs elsewhere.

The trend suggests that as AI investment accelerates across the tech sector, some firms are trimming traditional headcount to fund AI development and infrastructure.