khushboo 
(C): Unsplash
The technology industry globally is experiencing another round of layoffs in 2025, spanning a number of sizable and smaller firms. While taking place in 2025, the job cuts are not only about cost-cuts; they indicate a more comprehensive shift of where tech companies are restructuring for AI, efficiency and long-term sustainability. Let’s review the context for what is happening, why it is occurring, and what it means for workers. Stay informed — explore our Labour Rights section for the latest news and policy updates.
Overall Layoff Statistics – Important Figures
- BusinessToday reports that in 2025, there were more than 112,700 tech positions eliminated across 218 companies.
- According to India Today, there will be more than 80,000 tech layoffs by mid-2025 from major companies like Intel, Microsoft and Meta.
- Finally, Layoffs. fyi reports and tracks data across multiple outlets and shows at least 61,000 tech layoffs through 130+ companies so far.
Read also: Soft Layoffs vs Hard Layoffs Explained: Workplace Shift 2025
Who’s Cutting Jobs — Big Names and Startups Alike Are Feeling the Pressure
- Intel is reducing its workforce by an astounding 24,000 employees worldwide, with significant cuts in manufacturing and R&D units.
- Amazon announced that most of its roughly 14,000 job cuts will come from the corporate level as it continues to rationalise its operations and allocate greater resources to both AI and the cloud.
- Microsoft also announced job cuts (precisely 9,000 in one round) to meet talent with AI and cloud priorities.
- CrowdStrike, a cybersecurity company, is eliminating ~500 people, or 5% of its workforce, due to site AI evaluations to reorganise the company’s business.
- Significant layoffs are also happening at the startup level, with Snorkel AI — an AI-training unicorn — laying off 13% of its overall employees, particularly in engineering, as they pivot the business model.
- Other startups that are reported to be cutting jobs include Chegg, Deep Instinct, and Level, according to TechCrunch.
Why Are These Layoffs Occurring? Key Factors
1. AI & Automation: Numerous organisations assert that AI is making some traditional roles obsolete. As companies invest resources into generative AI and automation initiatives, they’re choosing to reorient their structures to facilitate a decreased reliance on labour and prioritise more strategic, higher-value roles.
2. Over hiring Through COVID-19: A more common narrative from organisations is that they expanded too far too quickly during COVID-19 and are now retracting.
3. Uncertainty & Market Pressures: There are barriers to growth, inflation, and other macroeconomic conditions putting pressure on tech companies to create leaner, more cost-efficient operational models.
4. Skills Gap: Some legacy positions and many middle management positions are becoming obsolete as organizations transition toward AI-first companies.
5. Start-Up Burn Rates: Start-ups that raised heavily in a cheap money era are cutting costs to survive, especially if they’re still trying to establish a path to profitability. Consequences of the Tech Layoff Wave of 2023 and What it Means for Tech Workers and Tech-Enabled Startups Job Market Disruption For many professionals in the industry, improved employment opportunities are likely to remain elusive, especially for roles in traditional or less A.I. enabled areas.
- Upskilling Requirements: Tech workers may need to upgrade their skills in areas of A.I., Data, Cloud, or more “future-proof” roles in an effort to remain relevant in the marketplace.
- Mental Health Effects: The negative effects of constant layoffs and uncertainty will affect employee mental well-being.
- Startup Ecosystem: As new, leaner startups emerge, it’s likely that many of the current high-flying to overvalued companies will be scaled back and possibly shuttered as many tech roles are being reassessed with the move to A.I., Data, and Cloud.
- Longer-Term Strategy: Firms that once operated on the basis of growth at all costs are now taking a much slower approach to growth, meaning they will be reassessing roles in the workforce long-term.
Final Thoughts
The global tech layoff wave of 2023 represents something more than simply a cost-cutting manoeuvre by companies in the industry – it is a recognition that the industry is being rebirthed. Companies are undertaking aggressive pivots around A.I., Cloud and Automation, meaning that many work arrangements will be rescinded or reassessed. This is painful now, but could lay the groundwork for a more agile and innovative sector down the road. The clear message to tech workers is to adapt, enhance your skills, and be ready for the next-in-quick succession work-whirlwind.
