AI surge, human cost: Thousands of jobs lost in 2025 as layoffs accelerate
The layoff trend is reminiscent of 2024, which saw a total of approximately 1,50,000 job losses spanning 549 companies. May 2025 has followed suit with another round of workforce reductions, this time from some of the world’s biggest tech names.
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Less than halfway into 2025, the tech industry is seeing a painful déjà vu - repeated rounds of job cuts that have already impacted over 50,000 workers, according to a research by independent tracker Layoffs.fyi.
April alone accounted for 24,545 layoffs across 26 companies, making it one of the harshest months this year, as per media reports.
By comparison, 2024 witnessed approximately 1,50,000 tech job losses across more than 500 firms. But 2025 may be on track to eclipse that number, as major players like Microsoft, Amazon, and Google continue to trim their workforce - citing operational realignment and a sharpened focus on AI.
Also Read: Google Engineer responds to Microsoft layoffs, says 'Tech pays 5x more than government jobs’
The AI paradox: Efficiency vs effectiveness
Artificial intelligence is at the heart of this wave. On one side, companies are adopting AI to boost efficiency or pivot to AI-first business models. On the other, the soaring costs of building AI infrastructure are pushing firms to downsize to free up capital, as per media reports.
However, the bet on AI is revealing cracks. Swedish fintech Klarna, an early adopter of AI for customer service, is reportedly returning to human agents after AI-driven interactions results in lower quality service, per a Bloomberg report.
An IBM survey of 2,000 global CEOs echoed this caution: only 25% of AI initiatives have delivered the expected returns, and just 16% have scaled across enterprises.
May 2025: Who’s cutting back?
Here’s a look at some of the major tech layoffs that have taken place so far:
Microsoft
On May 13, the tech giant announced its largest layoff since 2023, cutting around 6,000 jobs, or 3% of its workforce. All levels and geographies were affected, including Microsoft-owned LinkedIn. Even high-ranking executives like AI Director Gabriela de Queiroz were let go.
Amazon
On May 14, Amazon slashed 100 jobs in its Devices & Services unit, the division responsible for Kindle, Alexa, and Zoox.
Earlier this month, on May 6, Google laid off about 200 employees from its Global Business Organization (GBO), which handles sales and partnerships.
Crowdstrike
The cybersecurity company revealed on May 7 that it would eliminate 500 roles, or 5% of its workforce, as it realigns priorities.
Match Group
The parent company of Tinder and Hinge is laying off 13% of its employees, affecting 325 workers, in a push to consolidate and streamline operations.
Meta
About 100 employees from Meta’s Reality Labs division were laid off, affecting teams working on VR and hardware innovations for Quest headsets.
PwC
The consultancy cut 1,500 roles this month, predominantly from its tax and audit teams.
HP
In February, HP announced it would cut up to 2,000 jobs as part of its 2025 restructuring plan.
Dell
The company reported a reduction of 12,000 employees over the past year, as per its SEC filings.
While companies continue to bet on AI to drive growth and cut costs, early outcomes suggest that AI alone may not be the panacea it's been billed as. With human skills still hard to replicate, and many AI projects failing to scale or deliver promised ROI, the tech industry is entering a critical period of recalibration.
