The technology sector continues to grapple with a significant wave of workforce reductions in 2025, a trend that echoes the tumultuous job market seen in the preceding year. Independent tracking by Layoffs.fyi indicates that over 22,000 tech professionals have been impacted by job cuts across the industry since the start of the year, with a particularly sharp contraction in February, accounting for more than 16,000 of those reductions. This ongoing period of retrenchment follows a challenging 2024, which witnessed over 150,000 job eliminations across nearly 550 companies, signaling a sustained recalibration within the tech landscape.

This widespread pruning reflects a confluence of factors, including persistent macroeconomic uncertainties, a re-evaluation of post-pandemic growth strategies, and the accelerating integration of artificial intelligence and automation. Companies across the spectrum, from established giants to nimble startups, are streamlining operations, divesting non-core assets, and prioritizing profitability over unbridled expansion. While the scale of these layoffs underscores a difficult period for many individuals, it also highlights a strategic pivot as the industry adapts to new technological paradigms and evolving market demands.

The Unrelenting Wave of 2025

The current environment in 2025 isn’t an isolated phenomenon but rather a continuation of a broader trend that began to take shape in mid-2022. Following a period of unprecedented hiring and rapid expansion fueled by low interest rates and a surge in digital demand during the COVID-19 pandemic, many tech companies found themselves overstaffed as market conditions shifted. Rising inflation, aggressive interest rate hikes by central banks, and a tightening venture capital market forced a dramatic re-evaluation of spending and growth projections. The "growth at all costs" mantra gave way to a focus on efficiency, profitability, and sustainable business models.

This historical context is crucial for understanding the current climate. The layoffs in 2025 represent a second, and in some cases, third or fourth, round of cuts for many organizations, suggesting that initial adjustments were either insufficient or that market dynamics continued to deteriorate. The tech industry, known for its cyclical nature, is once again demonstrating its vulnerability to economic headwinds, even as its underlying innovations continue to reshape global commerce and society.

A Year of Retrenchment: Monthly Breakdown of Layoffs

The comprehensive list of job cuts across 2025 illustrates the breadth and depth of the industry’s adjustments. From multinational corporations to specialized startups, few segments have been immune to the forces driving these workforce reductions.

December’s End-of-Year Adjustments

As 2025 drew to a close, several companies announced further workforce reductions, reflecting ongoing strategic shifts. Payoneer, a digital payment platform, disclosed plans to reduce its global workforce by approximately 6%, affecting around 30 employees in Israel and a similar number internationally. Image editing app VSCO restructured to focus on professional photography tools, leading to 24 layoffs, with CEO Eric Wittman citing unmet consumer demand. Mobileye, an Intel subsidiary specializing in autonomous driving technology, reportedly cut 200 employees, about 4% of its global team, primarily impacting its Israeli operations. The hospital-at-home startup Inside Inbound Health, which had raised over $50 million, completely ceased operations on December 1, highlighting the precarious nature of venture-backed health tech.

November: Corporate Restructuring and Efficiency Drives

November saw major players like Intel and HP continuing their previously announced restructuring initiatives. Intel eliminated 59 Bay Area jobs, part of a broader goal to significantly reduce its workforce throughout the year. HP revealed plans to cut 4,000 to 6,000 jobs worldwide by 2028, aiming to streamline operations and leverage AI for greater efficiency. Apple, a company rarely associated with widespread layoffs, reduced several sales positions across business, education, and government accounts to streamline its sales processes.

The month also brought challenges for startups and specialized firms. Monarch Tractor, an autonomous electric tractor startup, warned employees of potential layoffs of over 100 workers or even a complete shutdown after weeks of staff reductions across its global offices. Gaming company Playtika announced its fifth round of cuts since 2022, planning to lay off 700 to 800 employees (20% of its workforce). Revenue-based lender Pipe, once valued at $2 billion, eliminated about 200 employees (roughly half its workforce) in a push for profitability. Cybersecurity firms Deepwatch and Axonius also reported layoffs, with Deepwatch explicitly citing AI as a factor in its decision to reduce 60-80 employees. MyBambu, a fintech company, permanently closed its local operations, impacting 141 employees in two waves due to funding issues.

October: Market Pullbacks and Strategic Shifts

October witnessed substantial layoffs from tech behemoths and specialized sectors. Amazon, following earlier reports of potential cuts affecting up to 30,000 corporate jobs, confirmed a reduction of approximately 14,000 roles. Since then, 660 employees were laid off in New York City alone, with more expected. Electric vehicle manufacturer Rivian cut 600 jobs (4% of its workforce), marking its third layoff round in 2025 amid a broader EV market slowdown. Meta eliminated approximately 600 employees across its AI infrastructure units, though its top-tier AI research remained unaffected.

Applied Materials, a semiconductor equipment supplier, planned to cut 4% of its workforce (around 1,400 jobs) to streamline operations, partly in response to tighter U.S. semiconductor export controls. Handshake, a platform connecting college students with employers, laid off about 100 employees (15% of its U.S. workforce) across various recruiting roles. Smartsheet, an enterprise software company, reported over 120 layoffs following a leadership transition. Google cut over 100 design roles in its cloud division, signaling a shift toward AI investments. Paycom, an HR and payroll software company, laid off over 500 employees, citing AI and automation improvements in back-office efficiencies.

September: AI and Automation’s Growing Influence

The theme of AI and automation as drivers for efficiency-led layoffs became more pronounced in September. Just Eat, Europe’s largest food delivery company, announced plans to eliminate around 450 jobs across multiple functions and countries, attributing the move partly to increased use of automation and AI. Freelance services marketplace Fiverr planned to cut approximately 250 jobs (30% of its workforce) as it restructured to become a "leaner, faster, and AI-focused company."

Other significant cuts included ZipRecruiter closing its Tel Aviv development center, affecting 80 jobs, and conversational AI company GupShup laying off at least 100 employees, just months after a previous round. Elon Musk’s xAI reportedly laid off about a third of its data annotation team (around 500 jobs) as it shifted focus from generalist to specialist AI roles. Rivian had another round of layoffs, impacting 200 workers (1.5% of staff), preparing for the end of federal EV tax credits. Oracle continued its reductions, cutting 101 jobs in Seattle and 254 in San Francisco. Salesforce trimmed another 262 jobs at its San Francisco headquarters, with CEO Marc Benioff publicly touting AI’s potential to reduce customer support roles.

August: Continued Consolidation and Cost-Cutting

August maintained the trend of strategic workforce reductions. Cisco planned to eliminate 221 positions across its Milpitas and San Francisco offices as part of a broader workforce-reduction strategy. Restaurant365, a back-office software provider for restaurant chains, laid off about 100 employees (9% of its workforce) after missing growth targets. Oracle announced additional cuts of 101 jobs in Santa Clara and 161 in Seattle. F5, a security and application delivery company, cut 106 positions in Washington state as part of a global reduction.

Fitness tech company Peloton announced its sixth layoff in just over a year, cutting 6% of its workforce to improve long-term business health. Kaltura, a corporate video software company, cut 10% of its workforce (around 70 employees) in a cost-saving effort, while paradoxically planning to grow sales and marketing for its AI-powered offerings. Yotpo, an Israeli-founded e-commerce marketing platform, laid off about 200 employees (34% of its global workforce) as it shut down email and SMS marketing operations to invest in AI-powered tools. Windsurf, an AI coding startup, laid off 30 employees and offered buyouts to the remaining 200 shortly after being acquired by Cognition, suggesting a focus on intellectual property over personnel. Amazon-owned Wondery cut 100 jobs as part of an audio reorganization.

July: The Expanding Reach of Workforce Reductions

July saw further significant cuts, highlighting the broad impact across various tech sub-sectors. Atlassian, the Australian software firm, cut 150 roles in customer service and support, attributing the decision to platform enhancements and increased automation, even as its co-founder publicly advocated for an "AI revolution." Consensys, a crypto software firm behind MetaMask, cut about 7% of its workforce (47 employees) in a push for profitability. Social collaging platform Zeen shut down operations, underscoring challenges for social media startups.

Scale AI, a data-labeling startup, laid off around 200 employees (14% of its workforce) and severed ties with 500 global contractors. Lenovo planned to cut over 100 U.S. full-time jobs, about 3% of its workforce. Intel announced a substantial layoff of nearly 2,400 workers in Oregon, following an earlier report of 500 cuts. Job search platforms Indeed and Glassdoor combined planned to eliminate approximately 1,300 jobs as part of a restructuring to integrate operations and focus on AI. Blockchain research startup Eigen Lab laid off 29 employees (25% of its workforce) as part of a reorganization. Microsoft continued its rounds of cuts, eliminating 9,000 employees (less than 4% of its global workforce) across various teams and geographies, building on previous smaller reductions earlier in the year. ByteDance, TikTok’s parent company, laid off 65 employees in Bellevue, Washington, within its e-commerce division.

June: Tech Giants and Startups Feel the Squeeze

June demonstrated that even as some companies invest in new areas, existing operations face scrutiny. TomTom, the location technology startup, cut 300 jobs (10% of its workforce) in sales and support, citing an AI shift and organizational restructuring. Rivian reduced its manufacturing headcount by approximately 140 employees (1% of its total workforce). Dating app Bumble announced plans to cut about 240 jobs (30% of its workforce) to enhance operational efficiency and reallocate savings to new product development.

Klue, a Vancouver-based AI-powered business intelligence software provider, reportedly laid off 85 employees (40% of its workforce). Google downsized its smart TV division by 25% of its 300-member team, cutting funding by 10% while increasing investment in AI projects. Intel announced plans to lay off 15% to 20% of workers in its Intel Foundry division starting in July, and also confirmed it would wind down its automotive business. Gaming company Playtika had another round of layoffs, impacting 90 employees in Israel and Poland. Video startup Airtime, founded by Evernote’s Phil Libin, let go of about 25 employees from its 58-person team. Microsoft had further layoffs impacting software engineers, product managers, and legal counsels, just weeks after a larger round of 6,500 cuts.

May: Navigating Economic Headwinds

May saw a mix of telehealth, e-commerce, and cybersecurity firms making adjustments. Telehealth platform Hims & Hers planned to cut 68 employees (4% of its staff) in a move unrelated to a U.S. ban on weight-loss drug copies, focusing on long-term expansion. Amazon laid off around 100 employees from its devices and services division (including Alexa and Echo teams), continuing its broader cost-cutting efforts since 2022.

Microsoft announced a significant cut of over 6,500 jobs (3% of its worldwide workforce), one of its largest layoffs since 2023. Edtech startup Chegg planned to lay off 248 employees (22% of its workforce), citing a drop in web traffic as students increasingly opt for AI tools over traditional platforms. Match Group, the dating app conglomerate, reduced its workforce by 13% as part of a reorganization to cut costs. Cybersecurity firm CrowdStrike laid off 5% of its global workforce (around 500 people) as part of a strategic plan to increase efficiencies and meet financial targets. Fusion power startup General Fusion cut roughly 25% of its workforce due to cash shortages. Israeli cybersecurity startup Deep Instinct reduced its headcount by 20 employees (10% of its workforce). British climate startup Beam shut down operations, letting go of approximately 200 employees months after expansion plans, highlighting difficulties in the climate tech space.

April: Broad-Based Reductions Across the Sector

April showcased a broad impact across various tech segments. Data storage firm NetApp reportedly eliminated 700 jobs (6% of its workforce) for operational efficiency. Electronic Arts laid off 300-400 employees, including around 100 at Respawn Entertainment, to refocus on strategic priorities. Expedia cut around 3% of its employees, mainly in mid-level product and technology roles, following earlier marketing team reductions.

India-based e-commerce platform Cars24 reduced its workforce by about 200 employees in product and technology divisions. Meta let go of over 100 employees in its Reality Labs division (VR and wearable tech). Intel announced a massive plan to lay off more than 21,000 employees (roughly 20% of its workforce), a significant restructuring under its recently appointed CEO. GM laid off 200 people at its electric vehicle factory in Detroit amid an EV slowdown. India-based insurtech startup Zopper reportedly let go of around 100 employees since the start of 2025. Car rental startup Turo reduced its workforce by 150 positions after deciding not to proceed with its IPO. Conversational AI company GupShup had its second round of layoffs in five months, affecting roughly 200 employees. German logistics startup Forto eliminated 200 jobs (one-third of its employees), mostly in sales. Microsoft’s joint venture in China, Wicresoft, ceased operations, affecting around 2,000 employees, following Microsoft’s decision to end outsourcing after-sales support. Software company Five9 planned to cut 123 jobs (4% of its workforce), prioritizing AI for profitable growth. Google laid off hundreds of employees in its platforms and devices division (Android, Pixel, Chrome). Automattic, the WordPress.com developer, laid off 16% of its workforce (over 270 staff). Canva let go of 10-12 technical writers, following its push for employees to use generative AI tools.

March: Significant Restructuring Efforts

March was marked by large-scale restructuring across diverse industries. Northvolt, the embattled Swedish battery maker, laid off 2,800 employees (62% of its staff) after filing for bankruptcy. Block, the fintech company led by Jack Dorsey, cut 931 employees (8% of its workforce) as part of a reorganization, with Dorsey noting it wasn’t for financial reasons or AI replacement. Brightcove, a streaming company, laid off 198 employees (two-thirds of its U.S. workforce) after being acquired by Bending Spoons.

Data management firm Acxiom reportedly laid off 130 employees (3.5% of its workforce). Sequoia Capital closed its Washington, D.C. office and let go of its three-person policy team. Siemens announced plans to eliminate approximately 5,600 jobs globally in its automation and electric-vehicle charging businesses to improve competitiveness. Meal-kit delivery service HelloFresh laid off 273 employees and closed a distribution center. Cybersecurity firm Otorio cut 45 employees (more than half its workforce) after being acquired by Armis. ActiveFence, another cybersecurity firm, reduced 22 employees (7% of its workforce), mostly in Israel. AI startup D-ID cut 22 jobs (nearly a quarter of its workforce) following a strategic partnership with Microsoft. NASA announced office closures, including its Office of Technology, Policy, and Strategy and the DEI branch. Home furnishings retailer Wayfair planned to lay off 340 employees in its technology division. HPE cut 2,500 employees (5% of its total staff) following a slide in shares. TikTok cut up to 300 workers in Dublin (10% of its Ireland workforce). SaaS company LiveRamp laid off 65 employees (5% of its workforce). Ola Electric planned to cut over 1,000 employees and contractors. Gaming startup Rec Room reduced its headcount by 16% to become "scrappier." Flipkart shut down ANS Commerce, affecting an unknown number of employees.

February: Early Year Adjustments and Strategic Realignment

February demonstrated early year strategic adjustments. HP planned to cut up to 2,000 jobs as part of its "Future Now" restructuring plan. Food delivery company GrubHub announced 500 job cuts (over 20% of its workforce) after its sale to Wonder Group. Autodesk planned to lay off 1,350 employees (9% of its workforce) to reshape its go-to-market model. Google planned to cut employees in its People Operations and cloud organizations, offering a voluntary exit program.

Biotechnology firm Nautilus reduced its headcount by 25 employees (16% of its workforce). eBay reportedly cut a few dozen employees in Israel (10% of its local workforce). Starbucks cut 1,100 jobs, outsourcing some tech work to third parties. Commercetools, a "headless commerce" platform, laid off dozens of employees (around 10% of staff) after failing to meet sales growth targets. HR software firm Dayforce planned to cut roughly 5% of its workforce. Expedia had further layoffs to cut costs. Skybox Security ceased operations, laying off approximately 300 employees after selling its business and technology. Women’s healthcare provider HerMD shut down operations, with layoffs tied to its former in-person business. Zendesk cut 51 jobs in its San Francisco headquarters. Nigerian startup Vendease cut 120 employees (44% of its staff). Anti-misinformation startup Logically laid off dozens of employees globally. Blue Origin planned to lay off about 10% of its workforce (over 1,000 employees), largely impacting engineering and program management. Real estate company Redfin planned to cut around 450 positions following a partnership with Zillow. Cybersecurity firm Sophos laid off 6% of its workforce. Fintech unicorn Zepz planned to cut nearly 200 employees. Unity reportedly conducted another round of layoffs. JustWorks cut nearly 200 employees, citing potential adverse events. Micromobility firm Bird cut 120 jobs (one-third of its workforce). Customer experience platform Sprinklr laid off about 500 employees (15% of its workforce), citing poor business performance. Sonos reportedly let go of approximately 200 employees. Workday laid off 1,750 employees (8.5% of its total headcount). Okta laid off 180 employees. Autonomous vehicle company Cruise planned to slash its workforce by 50% as it prepared to shut down operations under General Motors. Salesforce reportedly eliminated more than 1,000 jobs, even while actively hiring for AI product sales.

January: Kicking Off a Challenging Year

The year 2025 began with a continuation of the layoff trend from 2024. Fintech startup Cushion shut down operations after eight years and over $20 million in funding. Location intelligence firm Placer.ai laid off 150 U.S.-based employees (18% of its workforce) in an effort to reach profitability. Amazon laid off dozens of workers in its communications department to streamline operations. Fintech giant Stripe laid off 300 people, though it still planned to increase its total headcount by 17%.

Augmented writing startup Textio laid off 15 employees as it underwent restructuring. Audio company Pocket FM cut 75 employees for long-term sustainability. Aurora Solar planned to cut 58 employees due to "ongoing macroeconomic challenges and continued uncertainty in the solar industry." Meta announced plans to cut 5% of its staff, targeting "low performers" as it prepared for an "intense year." Wayfair cut up to 730 jobs (3% of its workforce) as it planned to exit operations in Germany and focus on physical retail. Delivery startup Pandion shut down operations, affecting 63 employees, with no severance. 3D printing construction company Icon laid off 114 employees as part of a team realignment. Fintech firm Altruist eliminated 37 jobs (10% of its workforce) despite revenue growth. Aqua Security cut dozens of employees globally for profitability. SolarEdge Technologies planned to lay off 400 employees globally, its fourth layoff round since January 2024, amid a solar industry downturn. Fintech startup Level abruptly shut down after an unsuccessful attempt to find a buyer.

Underlying Forces: Economic Pressures and AI’s Dual Impact

The recurring narrative across these layoff announcements reveals several powerful forces at play.

Economic Headwinds and Market Corrections

A primary driver remains the challenging macroeconomic environment. High inflation, coupled with elevated interest rates, has increased the cost of capital, making it harder for companies to secure funding, especially for unprofitable startups. Consumers and businesses are tightening their belts, impacting demand for various tech products and services. Many companies that expanded aggressively during the pandemic, anticipating continued exponential growth, are now correcting for that over-hiring. This market correction is a global phenomenon, affecting tech hubs from Silicon Valley to Tel Aviv, London, and Bangalore.

The AI Revolution: Efficiency vs. Displacement

Artificial intelligence stands out as a significant, and often explicit, factor in the 2025 layoffs. Companies like Paycom, Just Eat, Fiverr, Deepwatch, Atlassian, and Canva have directly cited AI or automation as reasons for job cuts, particularly in roles related to customer service, data annotation, content creation, and back-office operations. This indicates a profound shift where AI is not just enhancing human capabilities but, in some cases, directly replacing tasks previously performed by employees.

However, the narrative isn’t purely one of displacement. Many companies, including Google and Salesforce, are simultaneously laying off staff in some areas while actively hiring for AI-related roles. This suggests a reallocation of resources and a transformation of the skills required in the workforce. The "AI revolution" is creating new jobs and opportunities, but it also demands a significant upskilling or reskilling of the existing workforce, leading to a period of transition and disruption.

The Startup Ecosystem Under Strain

Venture-backed startups, particularly those that raised capital at high valuations during the boom years, are under immense pressure. With investor sentiment shifting from "growth at all costs" to "profitability," many startups are being forced to dramatically cut expenses, even if it means sacrificing ambitious growth plans or, in unfortunate cases like Inside Inbound Health, Zeen, Cushion, and Level, shutting down entirely. The focus has moved to demonstrating a clear path to profitability, making efficiency paramount.

Human Cost and Future Outlook

The sheer volume of layoffs has a profound social and cultural impact. For individuals, it brings uncertainty, financial strain, and a sense of disillusionment. The tech industry, once synonymous with job security and lavish perks, is now facing a different reality, potentially leading to a re-evaluation of career paths and a greater emphasis on adaptability.

From a market perspective, these adjustments, while painful, could lead to a more resilient and efficient tech sector in the long run. Companies are becoming leaner, focusing on core competencies, and investing strategically in high-growth areas like AI. The talent pool, though temporarily displaced, remains highly skilled and could fuel new innovations or invigorate other sectors. However, the concentration of power and wealth in fewer, larger tech entities, particularly those heavily invested in AI, raises questions about market competition and the future of work.

Looking ahead, the tech industry is likely to continue its evolution. While the pace of layoffs might eventually stabilize, the emphasis on efficiency, automation, and AI integration is here to stay. This will likely mean a continuous re-skilling imperative for the workforce and a dynamic, often turbulent, job market as the industry navigates technological advancements and global economic shifts. The current period is not merely a temporary blip but a fundamental reshaping of how the tech sector operates and grows.