In 2025, the tech industry continues to witness a wave of layoffs as companies pursue restructuring strategies driven by artificial intelligence (AI), cost optimization, and streamlined operations. According to Layoffs.fyi, over 23,500 employees across 93 companies have lost their jobs so far this year. While this number is lower than the massive layoffs of 2022 and 2023, the trend shows no signs of slowing.
Layoffs Surge Across Big Tech and Startups Amid Restructuring Efforts
Google, under Alphabet, recently laid off hundreds in its Platforms and Devices division, impacting Android, Pixel, and Chrome teams. These cuts follow earlier reductions in the company’s Cloud and HR units in February and are linked to post-merger efficiency efforts. Microsoft is also expected to initiate new layoffs in May 2025, with plans to restructure middle management and achieve a 10:1 engineer-to-manager ratio. Performance-based job losses may rise, especially among lower-rated employees.
Smaller firms haven’t been spared either. Automattic, the parent of WordPress, laid off 270 employees, or 16% of its workforce. Canva cut 10–12 technical writing roles, while TikTok laid off 300 staff in Dublin. Ola Electric trimmed over 1,000 jobs in India, and Siemens slashed 5,600 roles in its automation and EV charging units.
Tech Industry Shifts Focus to AI Amid Widespread Layoffs in 2025
Other major players, including Salesforce, HP, and Blue Origin, also announced layoffs exceeding 1,000 positions each. Meta began the year with job cuts affecting about 3,600 employees—5% of its workforce. Amazon, aiming for quicker decision-making, reduced its communications team.
Despite widespread job losses, many tech firms are actively hiring for AI-focused roles, indicating a shift in industry priorities. Experts attribute the ongoing layoffs to high inflation, tighter tech budgets, interest rate challenges, and increasing AI-driven automation. Overall, 2025 reflects a transition period for the tech sector—phasing out legacy roles while investing in future-ready technologies.
Summary:
In 2025, over 23,500 tech jobs were lost across 93 companies, including Google, Microsoft, and Meta, due to AI-driven restructuring and cost-cutting. Smaller firms and global players followed suit. Despite the layoffs, hiring in AI roles is rising, signalling a shift toward automation and future-focused tech transformation.
