Artificial intelligence has led to more than 10,000 jobs lost in the U.S. so far in 2025, a new report by Challenger, Gray & Christmas shows. CBS News MoneyWatch reporter Megan Cerullo joins with more details.

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

A new report from outplacement firm Challenger Gray and Christmas shows that over 10,000 jobs have been cut this year due to the adoption of generative artificial intelligence in private companies. The majority of these job losses are concentrated in the technology sector, where AI is increasingly capable of performing tasks such as coding and other repetitive duties typically handled by entry-level workers.

Recent college graduates are facing increased difficulty securing employment, as job postings for entry-level roles have declined by 15% while applications have risen by 30%. While AI is a significant factor in these job cuts, other economic pressures such as tariffs and policy uncertainty are also contributing to reduced hiring and layoffs across industries.

AI has led to more than 10,000 job cuts this year, new report shows

Artificial intelligence is presenting a real challenge to the American workforce. A fresh new report shows more than 10,000 jobs have been cut so far this year due to the rise of generative AI in private companies. Bank of America's CEO talked about the impact of AI on job growth on Face the Nation Sunday. AI gives you a place to go that we've never been able to go before. In other words, they're jobs that take text, think about it, and produce it. Many, many jobs in our company, our research team. Now you're able to maybe use a machine to enhance that activity. So we believe that people who harness AI for their benefit are gonna be very successful. CBS News Money Watch reporter Megan Cerullo joins us now in studio to talk about all of this. Megan, good morning and a warm welcome. Great to have you here. So 10,000 jobs lost. You also wonder, are any jobs being created? But which roles are most at risk right now? Who's really being hit hardest? We've been talking for a while now about AI's potential to take over jobs. It's no longer a possibility or a likelihood, it's a reality. This new report from Challenger Gray and Christmas, an outplacement firm, shows that so far this year, so for the first seven months of 2025, employers cut 10,000 jobs and they attributed those cuts directly to AI. Not surprisingly, a lot of the job cuts are concentrated in the tech sector because AI is good at things like coding. It's also good at the kinds of repetitive tasks that are usually associated with entry-level work, which is making it harder for some recent college graduates to land their first jobs out of school. I mean, for Gen Z and I guess younger millennials, they have just had a really tough time with the world. I mean, if they're just now graduating or they've just started at a new job and they're in the tech sector, which they have been told forever is gonna bring them riches and success, what are they experiencing right now? Right, well, some of them might be having concentration remorse by that. I mean, regretful for having concentrated in these subjects that they thought would provide them a lot of opportunities for jobs. What they're finding is, according to the OneCareer platform, job postings for recent college grads are down 15%. Meanwhile, applications for those same jobs are up 30%. So they're finding that it's even harder, it was hard to begin with, it's even harder to land that first job out of school. And you mentioned this report specifically cites AI as the reason for the job losses, we talk so much about government cuts, tariffs as well, all these other forces on the economy. How much of that is also weighing down people? There are a lot of, like you said, there are a lot of factors at play here and it's not fair to attribute all of these cuts to AI because we have tariffs and policy and economic uncertainty, which is weighing on businesses. And they are saying that that's causing them to pause investment and pause hiring decisions because they're anticipating that their own costs are gonna go up and where's a good place to cut costs? On labor. So they're cutting back on hiring and they're laying workers off. In the retail industry, for example, goods importers are anticipating having to pay higher costs on a lot of their imports and that's gonna affect their bottom lines and in turn affect hiring. Yeah, tough situation for so many people, but they should follow your reporting. I know you also give advice on what you can do with this brand new world we're in. Megan Cerullo, great to have you with us this Tuesday. Thanks, Errol.

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AI has led to more than 10,000 job cuts this year, new report shows

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