Tech Layoffs Surge in 2025: AI's Impact on Job Market

Several leading US tech companies, including Amazon, Microsoft, Meta, and Intel, have announced mass layoffs throughout 2025. The decision is mainly driven by broad cost-cutting measures and a strategic shift toward artificial intelligence (AI) and automation across different sectors. Microsoft has begun its third round of job cuts this year, mainly affecting its sales team and other customer-facing roles.

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Microsoft's 3rd Round of Layoffs This Year

The latest round of layoffs follows earlier ones in May, which saw over 6,000 job losses (about 3% of its global workforce) and further cuts affecting over 300 roles weeks later. The changes are in line with Microsoft's massive investment in AI infrastructure, reportedly spending around $80 billion on data centers this fiscal year.

Amazon Expects More Job Cuts as AI Takes Over

Amazon CEO Andy Jassy has stated the company expects more job cuts due to the integration of generative AI technologies into its processes. In 2025 alone, 14,000 corporate roles were cut in middle management, customer service, software development, HR, and internal communications.

Intel Plans to Cut 15-20% of Jobs Globally

Chipmaker Intel has announced plans for major workforce reductions, planning to lay off 15-20% of its employees within the Intel Foundry division starting in July. This could affect over 10,000 employees globally. The move comes as part of a larger restructuring under new CEO Lip-Bu Tan after reporting an $821 million loss in Q1 2025.

Meta and Walmart Also Continue to Reduce Workforce

Meta is restructuring with major job cuts in April within its Reality Labs division. After cutting over 21,000 workers since 2022, CEO Mark Zuckerberg announced that Meta would cut about 5% of its workforce (around 3,600 employees) through "performance-based cuts" starting February 10, 2025. Retail giant Walmart has also initiated corporate staff layoffs affecting under 1,500 employees, mainly in its global technology team and some advertising roles.

Other Firms That Announced Job Cuts in 2025

Alongside Microsoft, Amazon, Intel, Meta, and Walmart, several notable firms have announced job cuts in 2025. Cybersecurity firm CrowdStrike plans to lay off 5% of its global workforce amid market volatility and rising costs. Fintech company Block cut jobs, affecting 931 employees in March after an earlier round that affected around 1,000 roles in January.

Tech Layoffs Hit 100,000+ in 2025

The tech industry continues to face significant workforce reductions in 2025, with over 62,000 jobs lost in the first half of the year. Giants like Intel, Panasonic, Microsoft, and Amazon are restructuring due to economic uncertainty and shifting priorities. These layoffs span various sectors, impacting hardware, fintech, streaming, and even space companies as businesses prioritize AI and operational efficiency.

Image courtesy of The Times of India

Intel Plans 21,000+ Job Cuts

Intel announced plans to eliminate more than 21,000 employees, representing roughly 20% of its total workforce. This represents one of the largest single-company layoffs in tech history. Additionally, Intel plans to lay off 15% to 20% of workers in its Intel Foundry division starting in July.

Panasonic Cuts 10,000 Positions

Japanese electronics giant Panasonic has announced it will cut 10,000 jobs as part of a comprehensive restructuring plan. CEO Yuki Kusumi said the cuts are designed to better prepare the century-old company for future decades, with job losses expected in both Japan and overseas.

Microsoft Continues Multi-Phase Layoffs

Microsoft is implementing a multi-phase layoff strategy throughout 2025, first cutting over 6,500 jobs in May, affecting approximately 3% of its global workforce. The layoffs represent one of Microsoft's biggest reductions since it eliminated 10,000 employees in 2023.

Meta Targets "Low Performers"

Meta plans to cut 5% of its staff, targeting "low performers," according to CEO Mark Zuckerberg. The layoffs began in February and have significantly impacted teams overseeing Facebook and the Horizon virtual reality platform.

HP Implements 2,000 Job Cuts

HP has announced it will eliminate up to 2,000 jobs as part of its "Future Now" restructuring plan, aiming to save $300 million before the end of its fiscal year. This reflects ongoing challenges in the traditional PC and printing markets.

Google Conducts Multiple Layoff Rounds

Google has implemented several layoff rounds throughout 2025, cutting hundreds of employees across multiple divisions, including its global business unit and platforms and devices divisions. The search giant aims to drive greater collaboration and expand its ability to effectively serve customers.

Amazon Continues Strategic Workforce Reductions

Amazon has conducted layoffs across multiple divisions, including its devices and services division. The e-commerce giant has reduced its workforce by approximately 27,000 employees since 2022.

Tech Layoffs Surge Even as US Unemployment Remains Stable

In May 2025, nearly 100,000 layoffs were announced, driven by economic pressure and AI shifts. Despite a steady US unemployment rate at 4.2%, tech job cuts led the way, with 10,598 layoffs in May alone.

Image courtesy of Computerworld

Economic Pressures and AI Shifts

Tech layoffs continue as companies respond to economic pressures and the growing demand for AI skills. Employers are adopting a cautious hiring environment, with job openings down 11% year-over-year. The shift toward AI skills is evident, with tech job postings related to AI up 117% year-to-date year-over-year.

Impact of AI on Workforce and Layoffs

The integration of AI technologies has significantly impacted traditional job roles, reshaping workflows and potentially automating jobs previously held by humans. This transition emphasizes the need for reskilling and adapting to a specialized, AI-driven workforce.

Long-term Impacts on Tech Industry

The long-term impacts of the layoffs are multifaceted, driven largely by economic pressures and the disruptive force of AI. Companies are prioritizing AI-specialist roles over traditional positions, which may lead to a skills gap requiring significant retraining efforts among the workforce.

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