Layoffs in Tech Industry in the Year 2025
The tech industry has experienced a significant increase in layoffs since late 2022, with numerous companies announcing job cuts over the past few months. This trend can primarily be attributed to a combination of factors, including the end of pandemic-fueled overhiring, shifts in monetary policy, and the rapid adoption of artificial intelligence (AI) technologies.
Post-pandemic correction
During the COVID-19 pandemic, many tech companies massively increased hiring to meet surging demand. As the pandemic waned, this overexpansion was no longer sustainable, leading to layoffs beginning in late 2022.
End of Zero Interest Rate Policy (ZIRP)
The Federal Reserve began raising interest rates after a period of extremely low rates, leading to tighter capital conditions. This increased borrowing costs and reduced funding availability, pressuring tech companies to cut costs, including workforce reductions.
AI adoption and transformation
The rapid rise of AI since late 2022 has been cited by many tech CEOs to explain layoffs. However, experts say AI is only part of a more complex picture. Companies are restructuring to become more efficient, reallocating resources to AI infrastructure spending (like data centers and chips), which requires cutting non-essential roles. While AI directly caused some job cuts, it also drives a displacement and transformation of roles rather than outright elimination.
Broader economic signals
High-profile layoffs in tech act as a barometer for investor confidence and signal slowing growth. Despite a relatively strong overall job market, tech job postings have declined sharply, reflecting a weak tech hiring environment.
Other technological updates and external pressures
Beyond AI, automation and new software workflows contribute to workforce restructuring. Additionally, government-related cuts and budget pressures (such as those driven by the Department of Government Efficiency) indirectly impact tech jobs, especially in related sectors.
In summary, the increase in tech layoffs from late 2022 onward reflects the combination of pandemic overhiring correction, higher interest rates, AI-driven efficiency and restructuring, and broader economic cooling. AI is a significant but not sole driver; companies are simultaneously investing in AI capabilities while reducing headcount to maintain profitability and adapt to new technologies.
Key Layoff Announcements
- Intel announced mass layoffs at multiple U.S. locations in July, with estimates of approximately 5,000 layoffs in the U.S.
- On Jan. 9, Vox laid off an unspecified number of employees.
- On Feb. 13, Blue Origin laid off 1,000 workers or 10% of its staff.
- On Feb. 27, Autodesk laid off 1,350 workers or 9% of its staff.
- In April, several tech companies laid off workers, but specific numbers were not provided.
- Match Group laid off 325 of its employees on May 8.
- On Jan. 15, Meta said it would lay off 5% of its staff, or about 3,600 workers.
- On April 2, Automattic laid off 16% of its staff, or around 270 workers.
- On Jan. 9, Redfin laid off 46 employees.
- Indeed + Glassdoor announced plans to lay off 1,300 positions on July 11.
- On Feb. 28, HP laid off 2,000 workers.
- On April 16, Turo laid off 15% of its workers.
- On April 23, Intel announced plans to lay off 22,000 workers, or about 20% of its staff.
- On. Jan 14, Textio laid off 15 workers.
- On April 29, Electronic Arts laid off around 300 workers.
- On Jan. 7, Aqua Security laid off dozens of employees.
- In May, nCino laid off 1,880 people or 7% of its global staff.
- On April 10, General Motors laid off 200 workers at its Factory Zero plants in Detroit and Hamtramck, Mich.
- CrowdStrike said it would lay off some 500 of its workers on May 7.
- Microsoft laid off about 4% of its global workforce, or roughly 9,000 employees, on July 2.
- In June, Bumble announced it would be laying off 240 workers, or about 30% of its staff.
- On March 19, Sequoia laid off all workers in its D.C. office.
- Jamf laid off 6% of its workforce on July 16.
- On March 6, Hewlett Packard Enterprise said it would lay off 2,500 workers or 5% of its staff.
- On Feb. 10, Meta laid off 3,600 workers or about 5% of its staff.
- On Jan. 16, Aurora Solar laid off 58 people.
- On March 7, LiveRamp laid off 5% of its full-time workforce.
- On Feb. 10, Justworks laid off 200 workers.
- On Jan. 10, Zillow confirmed layoffs, but didn't specify how many workers were impacted.
This list is not exhaustive, and more layoffs are likely to be announced in the coming months as companies continue to adapt to changing market conditions.
- The rapid increase in layoffs within tech companies can be linked to the post-pandemic correction, where the end of pandemic-fueled overhiring necessitated workforce reductions.
- Higher interest rates have led to tighter capital conditions, causing tech companies to reduce funding availability by increasing borrowing costs, thus pressuring them to cut costs, including workforce reductions.
- The adoption and transformation of AI technologies have played a significant role in company restructuring, leading to layoffs, but also driving a displacement and transformation of roles rather than outright elimination.
- There have been numerous layoff announcements in the industry, such as Intel, Vox, Blue Origin, Autodesk, Match Group, Meta, and many others, signaling a weak tech hiring environment.
