Large-scale layoffs are defining the technology sector in 2025 — and the reason for this is not just technological innovation, but rapidly changing business strategies and automation. From giants like Microsoft, Google, Amazon to cybersecurity firms like CrowdStrike, hundreds of companies have cut staff heavily this year. According to Layoffs.fyi, more than 130 tech companies have laid off more than 61,000 employees by May 2025.
Companies are rapidly adopting automation
This time the layoffs are not just limited to cost cutting, but companies are reshaping the way they operate. They are rapidly adopting automation, mainstreaming AI and redistributing resources towards long-term profit and innovation.
Microsoft laid off 6,000 employees
Microsoft laid off 6,000 employees this year, 2,000 of them in Washington state. The company cut across several product lines and management levels.
Reasons
Reduction in roles related to old products
Focus on generative AI and automation
Google prioritizes AI talent
Google has prioritized AI talent over traditional business development positions while molding its search and advertising models towards AI.
Amazon: Cuts in Alexa, Kindle and Zoox units
Amazon laid off 100 employees from its Alexa, Kindle and Zoox units. The company is now focused on AWS and logistics.
CrowdStrike: Increasing investment in AI-based cybersecurity
CrowdStrike said, "We are cutting non-core roles and increasing investment in AI-based cybersecurity solutions keeping in mind the long-term benefits."
IBM: Jobs lost due to AI
IBM has opened recruitment for new technical positions while cutting HR and administrative roles. CEO Arvind Krishna said, "AI will eliminate some roles, but will also create new opportunities for technical talent."
Why are so many layoffs happening?
Economic uncertainty: Global recession, interest rates and inflation
Post-Covid stabilization: Now stable growth after temporary boom
AI dominance: Tools like ChatGPT, Bard, Copilot have eliminated many traditional roles
What Does the Future Hold?
Decline in administrative positions, demand for AI-enabled roles
Growing trend of freelancer and contract-based work
Flexible work preferred over full-time hiring
Prakash Kumar Pandey