The trend of layoffs in the tech industry shows no sign of slowing down in 2025, as major companies like Google, Microsoft, and several others continue to reduce their workforce. Although the numbers are smaller compared to the mass layoffs of 2022 and 2023, the cuts reflect a continued push to streamline operations, manage costs, and shift focus to emerging technologies like artificial intelligence (AI) and automation.
Key Layoff Trends in 2025:
-
Over 23,500 layoffs: According to Layoffs.fyi, more than 23,500 tech workers have lost their jobs this year across 93 companies. This figure continues to rise, indicating that the tech sector is still grappling with workforce reductions.
-
AI-led restructuring: Companies are increasingly using AI-driven strategies to restructure their operations, with an emphasis on improving efficiency and reducing redundancy in their teams.
Specific Companies in Focus:
-
Google (Alphabet): Google has laid off hundreds of employees from its Platforms and Devices division, which oversees major products like Android, Pixel smartphones, and Chrome. These cuts are part of an ongoing effort to operate more effectively, following a voluntary exit program earlier in the year. Google’s restructuring is also evident in its Cloud and HR departments, pointing to a broader cost-cutting strategy.
-
Microsoft: Microsoft is planning a round of layoffs in May 2025, primarily focused on middle-management roles. Internal sources suggest the company is aiming to increase the engineer-to-manager ratio, particularly in its security division, where they want to move from a 5.5:1 to a 10:1 ratio. Additionally, employees with consistently low performance ratings are expected to face terminations. These layoffs follow earlier job cuts in 2024, including 650 positions at Xbox and 2,000 employees earlier this year.
Widespread Impact:
-
The wave of layoffs extends beyond just the biggest players in the tech industry. Companies like Automattic (WordPress’s parent company), Canva, TikTok, and Ola Electric are also implementing significant workforce reductions. For instance, Automattic cut 16% of its workforce (around 270 employees), while Canva eliminated 10-12 technical writing roles, focusing more on AI-generated content creation. TikTok cut 300 jobs in its Dublin office, and Ola Electric, an Indian EV manufacturer, laid off over 1,000 employees and contractors in its second downsizing in just five months.
-
Siemens, HP, Blue Origin, and Salesforce have also made significant layoffs, with positions being cut in departments unrelated to AI and product development. These moves are part of a broader trend where companies are focusing on AI-driven innovation and cutting administrative or non-technical roles.
Meta’s Layoffs:
Meta started the year with an aggressive round of layoffs, cutting 5% of its workforce (around 3,600 employees) who were identified as low performers. At the same time, the company has ramped up hiring for AI-related positions, reflecting the broader industry trend of prioritizing AI expertise as part of their long-term strategy.
Why Are Layoffs Still Happening?
There are several factors driving these ongoing layoffs:
-
AI and Automation: Many tech companies are restructuring to integrate more AI and automation into their operations. This push is seen as necessary to remain competitive in the evolving tech landscape.
-
Economic Factors: Inflation, high interest rates, and reduced tech spending are contributing to tighter budgets for companies. To balance the books, many firms are cutting jobs, especially in administrative or non-technical roles, even while they continue to hire in AI-related positions.
-
Efficiency and Restructuring: Companies are also trying to become leaner and more agile, often by reducing the size of management teams or streamlining departments that have become bloated over time.
While these layoffs are painful for many employees, they also signal a broader shift in how tech companies are adjusting to new market realities and the growing influence of AI. Even as they cut jobs, companies are still investing heavily in AI talent to position themselves for future growth and competition.
