The tech sector faces another wave of significant layoffs in 2025. Economic instability and the increasing role of Artificial Intelligence (AI) are key drivers. So far this year, over 61,220 tech workers from 130 companies have been laid off. Major players like Microsoft, Google, and Amazon are among those reducing their workforces.
Microsoft’s Restructuring: On May 13, Microsoft announced its largest layoffs since 2023, cutting 6,000 jobs. This impacts about 3% of its global workforce. Around 2,000 jobs were cut in Washington state alone. Microsoft stated these changes aim for competitiveness in a “dynamic marketplace.” The company clarified that these cuts are not performance-based. They intend to reduce management layers and increase the ratio of engineers to non-technical staff. Earlier in January 2025, Microsoft also saw performance-based layoffs in its gaming and sales divisions.
Google’s Workforce Adjustments: Google has also continued job cuts. In early May, it laid off about 200 employees from its global business unit. This unit handles sales and partnerships. Google is restructuring it to “drive greater collaboration” and improve customer service. These recent tech layoffs follow earlier ones in 2025. In April, hundreds of jobs were eliminated in its Platforms & Devices unit (Android, Pixel, Chrome). Earlier this year, Google also saw voluntary exits and cuts in its cloud division. In January 2023, Google’s parent company, Alphabet, laid off 12,000 workers.
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Amazon’s Streamlining Efforts: Amazon also announced more layoffs in May. It cut about 100 jobs in its Devices and Services unit. This unit includes products like Alexa, Echo, Kindle, and Zoox. Amazon stated these layoffs are necessary to align with its product roadmap and streamline operations. These reductions are part of a larger plan to remove “unnecessary layers” in its organizational structure
