The tech sector is experiencing another significant round of workforce reductions in 2025, with leading companies such as Microsoft, Google, Amazon, and CrowdStrike eliminating thousands of positions as part of broad organizational overhauls. These layoffs are being driven by a combination of sluggish revenue growth, ongoing global economic instability, and the increasing integration of AI, which is reshaping conventional job roles.
According to data from Layoffs.fyi, more than 61,000 tech professionals have been let go this year across over 130 firms. Microsoft alone is responsible for 6,000 of those job losses—marking its largest layoff event since 2023. Announced on May 13, the layoffs span various departments and locations, with approximately 2,000 positions cut in Washington state. The company explained that the move is part of a broader strategy to streamline its management layers and place greater emphasis on engineering capabilities over administrative roles.
Meanwhile, IBM CEO Arvind Krishna disclosed that the company is rapidly embracing artificial intelligence and automation as part of its strategy to boost overall efficiency and performance. By integrating these advanced technologies into its operations, IBM aims to streamline processes, reduce manual workloads, and improve productivity across various departments.
Google layoffs:
Google has reportedly let go of several hundred employees across its Android, Pixel, and Chrome teams. As per a report by The Information, a company representative stated that these job cuts are part of the next phase following the merger of its Platforms and Devices units last year, aimed at improving operational efficiency. This round of layoffs follows Google’s earlier launch of a “voluntary exit program” in January, targeted at employees in its People Operations and Cloud divisions. The initiative allowed senior staff to depart with severance benefits, which included up to 14 weeks of base pay along with an extra week’s salary for every year of service completed.
IBM layoffs:
IBM has allegedly laid off around 8,000 employees, with most of the job cuts affecting its Human Resources department. This move comes on the heels of IBM deploying AI-driven solutions to take over tasks traditionally handled by HR staff, reportedly leading to the removal of about 200 positions. As companies increasingly embrace artificial intelligence across various operations, more job roles are gradually being replaced.
During a recent interview, IBM CEO Arvind Krishna revealed that the company is swiftly adopting AI and automation to enhance productivity. He emphasized that, even with these technological advancements, IBM’s overall headcount has increased, as the cost savings from automation are being reinvested into key departments such as marketing, software development, and sales support.
Amazon mass layoffs:
Amazon has recently cut approximately 100 jobs from its Devices and Services division, which manages offerings such as Alexa, Echo smart speakers, Kindle, and the Zoox autonomous vehicle initiative. According to the company, the layoffs are part of an effort to optimize operations and align the team more effectively with future product plans.
Microsoft layoffs:
Microsoft is said to be planning job cuts within its Xbox division in the coming week. A Bloomberg report suggests that the layoffs will be part of a larger organizational reshuffle across the company. Insiders have revealed that leaders within the Xbox unit are bracing for “significant” staff reductions. This would represent the fourth major round of layoffs for the Xbox team since early 2023, following three earlier workforce reductions and the shutdown of multiple affiliated game studios.