The Hidden Crisis: Tech Layoffs Surge in 2025 Amidst Mysterious Market Shifts and AI Advances

The wave of layoffs that has shaken the tech industry shows no signs of slowing in 2025, following a year that saw over 150,000 job cuts at more than 500 tech companies. Already this year, the industry has shed over 22,000 roles, including a surge of 16,084 positions cut in February alone.

Major tech giants, along with dozens of startups, have been forced into painful workforce reductions as they grapple with economic uncertainty, changing market conditions, and strategic realignments. From global corporations to smaller innovators, workers across numerous sectors within tech have borne the brunt of these changes, highlighting the stark consequences that increased automation, AI adoption, and broader volatility can have on human employment.

In June, Microsoft continued its workforce reduction, eliminating additional positions weeks after announcing a major round of layoffs impacting over 6,500 employees globally in May—approximately 3% of its total employee base. This latest downsizing has particularly targeted roles in engineering, product management, technical program management, legal counsel, and marketing.

Similarly, Playtika announced layoffs impacting approximately 90 employees across Israel and Poland, building on a previous cut of 50 positions just weeks earlier. Video startup Airtime also confirmed it had laid off 25 of its 58 employees, a significant reduction driven by strategic reevaluation.

May’s layoffs were even more substantial. Telehealth firm Hims & Hers laid off 68 employees, about 4% of its workforce, although the company emphasized its intent to continue strategic hiring despite the layoffs. Amazon trimmed roughly 100 roles in its Devices and Services division, continuing a broader trend of cost-cutting measures across the company. Microsoft’s previously mentioned larger round of layoffs in May represented one of its largest since eliminating 10,000 roles in 2023.

Chegg reduced its staffing by 22%, totaling about 248 employees, responding to declining web traffic as students shifted toward AI-driven educational tools. Match announced reductions impacting 13% of its employees as part of structural and organizational streamlining.

Cybersecurity firm CrowdStrike laid off 5% of its workforce—around 500 employees—in an effort to achieve greater operational efficiency. General Fusion downsized significantly, cutting approximately 25% of its entire staff due to financial pressures and operational restructuring. Deep Instinct cut 20 positions (10% of its workforce), while Beam, the British climate-focused startup, ceased operations completely, resulting in 200 lost jobs.

April was also ruthless. Intel announced a massive restructuring plan eliminating more than 21,000 workers, about 20% of its global workforce. NetApp cut 700 jobs to streamline operations, Electronic Arts shed several hundred employees, Expedia let go of 3% of its personnel primarily focusing on mid-level technology roles, Meta reduced headcount by over 100 in its VR-focused Reality Labs division, and Forto, the German logistics startup, downsized its workforce by a third. Google and Microsoft also reduced staff across several divisions, continuing their persistent cost-saving initiatives.

Earlier this year, Northvolt laid off 2,800 staff (62% of its employees), as the Swedish battery maker entered bankruptcy proceedings. Block cut 931 positions—8% of its workforce—in a significant reorganization. Brightcove eliminated two-thirds of its U.S. workforce following an acquisition, and Siemens began a planned reduction of 5,600 positions globally to increase competitiveness.

Even well-known startups weren’t immune. Automattic (the parent company behind WordPress), Canva, Chegg, and Turo all made significant workforce cuts, alongside Otorio (following its acquisition by cybersecurity firm Armis) and D-ID, which significantly reduced its team size despite strategic partnerships.

Layoffs throughout February 2025 were extensive—HP, Autodesk, eBay, Starbucks, Blue Origin, and Salesforce among the many who shed large segments of their workforces. Google significantly decreased its workforce in specific operations, offering voluntary exit programs to employees in selected units.

This trend has left few tech industries untouched—from cybersecurity and gaming to e-commerce and autonomous vehicles. Cruise reduced operations by half after General Motors significantly cut funding, dramatically impacting staff numbers, including top executives.

These job losses underscore broader industry trends toward leverage of artificial intelligence, profitability concerns, global economic pressures, and efforts at operational efficiency. Companies are navigating a challenging environment where technology-driven efficiencies often mean tough human decisions. As layoffs continue, the struggle between innovation, automation, and the human cost of doing business in the tech sector remains clear, with 2025 shaping as another difficult year for tech industry workers.

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