- The tech sector faces over 90,000 layoffs in 2025, with U.S. firms accounting for 72.5% of these job cuts.
- Major companies like Intel and Microsoft are reducing their workforces, highlighting ongoing financial pressures and industry restructuring.
What happened: Major tech layoffs impact over 90,000 jobs
In 2025, the technology sector experiences a significant wave of layoffs, with over 90,000 job losses recorded globally. A report from RationalFX reveals that U.S.-based firms account for 72.5% of these cuts, equating to about 65,545 employees. Intel, a prominent player in the industry, leads the layoffs, planning to cut around 25,000 roles, which represents roughly 20% of its workforce.
Other notable companies, including Panasonic and Microsoft, also implement substantial job reductions, with Microsoft letting go of 8,840 employees despite strong financial results. California, a hub for tech innovation, sees the highest number of layoffs, followed closely by states like Washington and Texas. The report attributes these job cuts to financial pressures, automation, and organisational restructuring, signalling a worrying trend for the tech industry.
Also Read: How recent tech layoffs continue to impact 2024’s tech scene
Also Read: The depth of tech layoffs: A closer look
Why it’s important
The ongoing layoffs in the tech sector reflect broader economic challenges and a shifting landscape in the industry. As companies adapt to financial pressures, many are re-evaluating their workforce needs, leading to significant job losses. This trend not only affects those directly impacted but also raises concerns about the stability of the tech sector as a whole. Notably, traditional roles in coding and data analysis are declining, while previously sought-after positions in AI and prompt engineering are also at risk.
These layoffs come at a time when the sector is expected to grow, highlighting a disconnect between workforce needs and market demands. Firms like Microsoft and Meta continue to downsize despite reporting record profits, indicating underlying issues that could affect long-term growth. The potential for total layoffs to reach 235,871 by the end of 2025 illustrates the urgency of addressing these challenges.
