Tech layoffs 2025: Over 61,000 jobs cut as Microsoft, Google, Amazon, and CrowdStrike reshape workforce

Tech layoffs are defining the trajectory of the technology sector in 2025 — not solely due to innovation, but because of the sweeping workforce restructuring taking place across the industry. From global giants like Microsoft, Google, and Amazon to specialized cybersecurity firms such as CrowdStrike, companies are reducing headcounts in significant numbers. As of mid-May, more than 61,000 tech jobs have been cut across over 130 companies, according to data from Layoffs.fyi. Unlike previous downturns driven by financial collapses or market crashes, this wave is propelled by three powerful forces: slowing post-pandemic revenue growth, persistent global economic uncertainty, and, most notably, the rapid deployment of artificial intelligence (AI) in core business operations.These layoffs signal a broader transformation in how tech firms are responding to modern pressures. Rather than merely cutting costs, many are strategically reorganizing their internal structures, accelerating AI-driven automation, and reallocating resources toward long-term innovation and profitability.According to the data from Layoffs.fri, as of May 2025, over 61,000 workers have been laid off in the tech industry — a continuation of a trend that began in 2022 and escalated dramatically in 2023. Companies are now more strategic in their announcements, often avoiding large headlines by issuing smaller, staggered job cuts throughout the year. Still, the cumulative effect has created deep uncertainty among tech professionals worldwide.Key stats (as of May 2025):The layoffs are not restricted to startups or mid-size firms; the biggest names in tech — Microsoft, Google, Amazon, and CrowdStrike — are among the most significant contributors to this tally. Let’s examine how each is navigating this reshuffling of talent and operations.In one of the largest individual cuts of the year, Microsoft laid off 6,000 employees, with nearly 2,000 roles eliminated in Washington state alone. This marked the company’s most substantial layoff since 2023. The job reductions span several business units, including support, administration, and middle management.Why Microsoft made the cuts:According to an internal memo, the company is making these changes to “improve clarity of decision-making and better align teams with strategic priorities.” The layoff announcement also came with news of increased investment in AI-powered enterprise solutions and cloud infrastructure.While Google hasn't made a single large-scale layoff announcement in 2025, it has been silently trimming its workforce across multiple departments. In May alone, 200 employees were laid off from its Global Business Organization (GBO) — a team that handles advertising sales and partner engagement. These cuts follow earlier reductions in the Pixel hardware team, Android division, Chrome operations, and Google Cloud.Strategic workforce realignment:Google’s restructuring is part of a broader initiative to recalibrate its business model in the face of AI-led disruption in search and advertising, two of its most lucrative verticals. Rather than hiring aggressively, the company is being more selective, favoring AI talent over traditional business development roles.Amazon announced in April that it would cut around 100 jobs in its Devices and Services division, which includes Alexa, Kindle, and Zoox — its autonomous vehicle subsidiary.Behind Amazon’s cuts:Amazon has long treated its devices division as an innovation lab. However, as pressure mounts to deliver profitability in every business line, the company is scaling back on experimental divisions and concentrating on proven revenue drivers like AWS and Prime logistics.Even high-growth cybersecurity companies aren’t immune. CrowdStrike announced layoffs impacting 5% of its global workforce, citing a shift towards long-term profitability amid rising costs and market volatility.CrowdStrike’s layoff strategy:CrowdStrike's decision is especially noteworthy as cybersecurity remains one of the fastest-growing segments of the tech industry. Yet even here, automation and AI are allowing firms to do more with fewer people, reducing the need for large support teams.IBM represents a hybrid approach to workforce management in the age of AI. While the company laid off several hundred employees, mostly from HR and administrative roles, it also announced new hiring plans focused on engineering, programming, and enterprise sales.IBM’s AI-driven workforce transition:IBM CEO Arvind Krishna has been vocal about the company’s “AI-first” strategy, noting that while automation will eliminate certain roles, it will also create new demand for technical talent, especially in sectors where human insight remains essential.While the specifics vary by company, the underlying causes of the 2025 tech layoffs can be traced to three interwoven trends:1. Macroeconomic volatility2. Post-pandemic growth corrections3. The AI revolutionThe 2025 layoff wave is more than just a cost-cutting exercise — it is a strategic rebalancing of what work looks like in the digital economy. The shift isn’t just about reducing headcount; it’s about reshaping the types of roles that matter most.Emerging trends: