Global Tech Shake-Up in 2025

In 2025, the tech industry experienced nearly 100,000 layoffs across 204 companies in the first half, signaling a global restructuring across industries and geographies. 
 
This wave underscores a profound shift in how the sector operates, adapting to new technological and economic realities. Compared to 2024’s 152,000 cuts across 549 firms, the 2025 pace is slower but still significant. 
 
The layoffs reflect ongoing efforts to streamline operations as companies navigate a post-pandemic landscape marked by strategic realignment.
Major tech giants led the reductions. 

Intel eliminated over 21,000 jobs, Microsoft cut 15,000 across May and July, IBM shed 8,000 roles (mostly in HR) to integrate AI, and Meta reduced 5,000 positions to focus on AI development. Smaller firms like HP, Workday, Salesforce, Bumble, and Rivian also downsized.

AI adoption drives over 60% of these layoffs, with generative AI replacing routine tasks in coding, support, and data analysis. 
 
This automation push reflects a broader trend of prioritizing efficiency and innovation.
 
Economic pressures, including inflation, tariffs, and rising interest rates, have tightened margins, prompting firms to correct over-hiring from the pandemic boom. 
 
This has led to staff reductions to match slower revenue growth.
 
Layoffs disproportionately hit sales and customer support roles, while engineering talent remains in demand. 
 
Non-technical roles like HR and marketing faced deeper cuts, particularly in the U.S., with the Bay Area hardest hit. Despite the cuts, AI investments exceeding $200 billion signal a strategic pivot. 
 
Displaced workers are finding roles in emerging tech, but growing inequality remains a concern as entry-level opportunities shrink.