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Big Tech layoffs in 2025 linked to AI and cost efficiency moves

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Big Tech layoffs in 2025 linked to AI and cost efficiency moves

Athira Sethu

Kochi, 17 May 2025

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The technology sector is again facing a rough patch in 2025. Large corporations such as Microsoft, Google, Amazon, and more are laying off thousands of employees. The reason for these layoffs is that the economy is not certain and organizations are looking to cut costs and maximize efficiency. Secondly, emerging technologies such as artificial intelligence (AI) are altering the way businesses operate and the type of employees they require.

More Than 60,000 Tech Employees Lost Their Jobs

More than 61,000 tech employees have lost their jobs this year in 130 firms, according to a website named Layoffs.

Microsoft To Cut 6,000 Jobs

The largest layoff occurred at Microsoft. On May 13, it said that it was laying off 6,000 employees, nearly 3% of its workforce. These job cuts are occurring in numerous locations, including nearly 2,000 jobs in Washington state.

Microsoft explained that the layoffs are not due to employees not doing a poor job. Rather, the company is attempting to eliminate unnecessary layers of management and concentrate more on engineers and technical personnel.

Google Also Letting People Go

Google has also been laying off employees but in smaller numbers. In early May, it let go of around 200 employees from its business team. This team deals with sales and partnerships. Google has already laid off employees from other departments earlier this year, including its Android and cloud teams.

Amazon Layoffs Continue

Amazon also let go of about 100 employees from its Devices and Services division. The division develops products such as Alexa, Echo speakers, and Kindle. Amazon claims it’s doing this to remain on course with its long-term plans and to make things easier to manage within the firm.

Cybersecurity Company CrowdStrike Cuts Jobs Too

Even cybersecurity firm CrowdStrike has let go of 5% of it’s employees to emphasize more on profits and the long-term.

AI and Middle Managers in Danger

Industry leaders believe AI is revolutionizing how business is done. Middle managers could lose their jobs as AI can automate some of their responsibilities. Those who fail to keep pace with new technologies could be at greater risk.

A Gartner report stated that by the year 2026, 20% of businesses will employ AI to eliminate over half of their middle management positions.

Basically, the tech world is undergoing significant transformation. Employees will have to acquire new skills in order to remain competitive, particularly as AI becomes a larger presence in the workplace.

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