In 2025, the technology sector is experiencing significant layoffs, with leading companies like Microsoft, Google, Amazon, and CrowdStrike cutting thousands of jobs. This trend is driven by slowing revenue growth, ongoing economic uncertainty, and the increasing influence of artificial intelligence (AI) on conventional work processes. According to Layoffs.fyi, more than 61,000 tech employees have lost their jobs this year across over 130 companies.
Microsoft’s Largest Layoff Since 2023
Microsoft announced the elimination of 6,000 positions on May 13, marking its biggest workforce reduction since 2023. The layoffs affect various departments and regions, including nearly 2,000 employees in Washington state. The company aims to streamline its management structure by reducing administrative roles and focusing more on engineering talent.
Google’s Steady Workforce Reduction
Google has been gradually trimming staff throughout 2025. In early May, it cut around 200 jobs from its global business organization responsible for advertising partnerships and sales. These layoffs follow earlier reductions in Pixel, Android, Chrome, and cloud divisions, continuing a restructuring effort that began with a 12,000-person layoff in 2023.
Amazon’s Targeted Cuts in Devices Division
Amazon eliminated 100 roles within its Devices and Services unit, which manages products such as Alexa, Kindle, and Zoox. This move aims to align the division more closely with Amazon’s product objectives and improve operational efficiency.
CrowdStrike Focuses on Profitability with Job Cuts
Cybersecurity company CrowdStrike recently laid off 5% of its workforce, citing the need to concentrate on long-term profitability. The firm is reshaping its organization to better adapt to the evolving market.
IBM’s Strategic Use of AI to Balance Automation and Growth
IBM CEO Arvind Krishna revealed that AI has enabled the company to automate tasks previously done by several hundred HR employees. While IBM did lay off some staff, it reinvested the savings by hiring new employees in programming and sales. This approach highlights IBM’s strategy of leveraging AI for operational efficiency while continuing to grow in key areas.
Industry Focuses on Efficiency and Adaptability
Despite varying approaches, the core message from these companies is clear: improving efficiency and adapting to change are essential. As AI technology reshapes workflows and economic uncertainties persist, the tech industry is prioritizing agile restructuring to remain competitive and sustainable.
