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2025 Sees Record Layoffs Amid AI Blame Game

2/10/2026

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Summary

U.S. Layoffs Surge

In 2025, U.S. layoffs rose to over 1.2 million, the highest since 2020.
About 55,000 layoffs were attributed to AI, though experts say this is overstated.
Research shows many firms use AI as a scapegoat for weak performance, not a direct cause.
A Harvard Business Review survey finds layoffs based on anticipated AI capabilities rather than actual implementation.

Summary

Baker McKenzie Layoffs

Baker McKenzie, the global law firm, will lay off over 700 employees from its global business services team to adapt to AI advancements and boost efficiency.
The decision follows a comprehensive review of its business functions aimed at aligning operations with client needs.
The layoffs affect IT and marketing departments, reflecting AI's influence on legal-sector job roles, and the firm says the changes are essential for long-term growth.

History

Historical Context

The Great Recession, officially lasting from December 2007 to June 2009, resulted in approximately 8.7 million job losses in the U.S. and a peak unemployment rate of 10% in October 2009. Major firms, including Baker McKenzie, faced layoffs as they adapted to economic pressures. Today, layoffs driven by AI advancements reflect a historical pattern of workforce reductions during financial crises, reshaping job markets.

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U.S. Layoffs Surge

In 2025, U.S. layoffs rose to over 1.2 million, the highest since 2020.
About 55,000 layoffs were attributed to AI, though experts say this is overstated.
Research shows many firms use AI as a scapegoat for weak performance, not a direct cause.
A Harvard Business Review survey finds layoffs based on anticipated AI capabilities rather than actual implementation.

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