It’s all a part of a massive wave of job cuts at some of the biggest names in tech, which have all announced layoffs in recent months — Google, Microsoft, Amazon, and IBM have shed thousands of jobs. And this is not simply a matter of belt-tightening – here’s what we learned from our analysis of the distribution business. Let’s unpack who’s doing the laying off, why they’re doing it and what this means for the future of tech.
📉 Layoff Watch: Counting the Numbers behind the Trend
Total affected: More than 61,000 tech workers who were fired or laid off at more than 130 companies during the first half of 2025
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Microsoft: Three rounds of layoffs — 6,000 jobs cut in May (3% of its total global workforce), and more layoffs in June and July, focusing on sales, Xbox and administrative staff.
IBM: Cut about 8,000 positions, primarily in its HR department, replacing the jobs with automation software based on AI.
Google: Cut hundreds of positions across its Android, Pixel, Chrome, People Operations and Cloud teams with buyouts and voluntary departures.
Amazon: Let go of employees in its Devices & Services division (Alexa, Kindle, Echo, Zoox), as CEO Andy Jassy warned of more cuts to be made in corporate positions.
🔍 Why Are These Cuts Happening?
Workforce Requirements Changing with AI and Automation
Artificial intelligence tools are handling everything from programming and HR to marketing and customer service. One example is IBM, which has already replaced hundreds of HR roles with AIs. Executives at Amazon and Microsoft have publicly said AI will lead to reduced head counts.
Economic Pressures & Profit-Driven Optimisation
In an environment of economic uncertainty worldwide and slow revenue growth after the pandemic, technology giants are looking to trim the fat. Microsoft’s reductions are intended to streamline by reducing administrative layers, while increasing the amount of engineering talent in its teams.
AI Infrastructure Investments
Microsoft is alone pouring billions into AI infrastructure, such as new data centers. The money that funds these programmes has to be taken from other non-core activities.
Cultural Shift in Workforce Management
During COVID tech was “employee-first” and in 2025 it gets to be “performance-first”. The return-to-office orders and more stringent performance requirements have helped to speed the departure of workers.
📌 Industry Impact & Worker Impact
Entry-Level Jobs Hit Hard
Job barriers rising for Gen Z in shrinking early-career tech roles. Recruiting in big firms has been reduced by more than 50 per cent, and young professionals have shifted to becoming professionals in AI-related fields to survive.
Shift in Skill Demands
Which is why Gen Z and the rest of the world’s workforce are getting pushed harder by the day to foster artificial intelligence expertise, broaden resumes bags of tricks and pivot toward nascent tech sectors.
Rise of New Roles
The emphasis at IBMaccenture and Microsoft, where Toland works, is on eliminating low-level and administrative job, while promoting the demand for available jobs in engineering, developing AI, and supporting data centres.
Market Signal to Investors
Layoffs convey an unmistakable sense of urgency to investors and stakeholders that companies are battling for agility, and efficiency, in the race for AI.
🧭 What’s Next for Tech Jobs?
More to Come: Tech companies, including Microsoft and Amazon, predict there will be more of these cuts as they invest in AI infrastructure.
Policy & Reskilling Emphasis: There’s an increasing call for public-private partnerships to retrain displaced workers for AI and high-value tech jobs.
Potential Job Creation: Analysts say that though many jobs will be lost as a result of AI, the technology may create new opportunities in fields such as data science, AI ethics and oversight of automation.
✅ Final Take
The 2025 tech layoff wave reflects a fundamental defragmentation of the industry: automation and AI are reimagining how tech companies work. Workers will face tensions in 2025, but the ability to re-train and learn new skills will be crucial as the job market continues to change.
But by the time Google, Microsoft, Amazon and IBM all become AI-first companies, what the future of work is supposed to look like in tech will hinge on how companies and workers alike respond to the massive sea changes sweeping through the industry.
