In 2025, the global technology sector is witnessing a fresh wave of mass layoffs, with artificial intelligence (AI) emerging as a major catalyst. From software giants like Microsoft and Google to hardware leaders like HP and popular platforms such as Duolingo, companies are restructuring their teams, citing the need to stay competitive in a rapidly evolving AI landscape.

Microsoft

Microsoft recently announced its largest round of job cuts since 2023, letting go of around 6,000 employees—about 3 per cent of its global workforce. These layoffs have touched all levels and locations, including nearly 2,000 software engineers in Washington state alone. The company says these cuts are not performance-related but are part of a broader strategy to reduce management layers and increase the ratio of engineers to non-technical staff.

Microsoft is investing heavily in AI, with CEO Satya Nadella revealing that AI now writes up to 30 per cent of code in some projects. Even the Director of AI for Startups, Gabriela de Queiroz, was among those let go, highlighting the sweeping nature of the restructuring. The company has also used computer algorithms to select employees for layoffs, a move that has sparked debate about the human cost of automation.

Google

Google, another tech titan, is also undergoing significant changes as it pivots towards AI. The company has already laid off around 12,000 employees and is reportedly contemplating up to 30,000 more job cuts. Google is revamping its ad sales department and exploring AI in customer support, aiming to replace some human roles with automated systems. CEO Sundar Pichai has acknowledged the need for reorganisation, which unfortunately means job losses as AI becomes more deeply embedded in Google’s operations.

Amazon

Amazon, the world’s largest e-commerce and cloud computing company, is undergoing one of the biggest restructuring efforts in its history. The company has announced plans to lay off up to 14,000 employees across multiple departments, including Amazon Web Services (AWS), retail operations, and human resources.

This move is part of Amazon’s broader shift towards AI and automation, aiming to streamline operations and reduce costs. CEO Andy Jassy acknowledged the difficulty of the decision, emphasising that the company is reallocating resources to strengthen AI-powered services and ensure long-term growth. The layoffs are seen as a reflection of Amazon’s commitment to innovation, even as it raises concerns about the future of human roles in an increasingly automated environment.

Meta

Meta, the parent company of Facebook, Instagram, and WhatsApp, has also been restructuring its workforce as it doubles down on AI and virtual reality technologies. The latest round of layoffs has affected its Reality Labs division, responsible for Oculus Studios and hardware research and development. Even teams working on high-profile projects like the Supernatural VR fitness app have been impacted. CEO Mark Zuckerberg’s drive for a “leaner, more agile organisation” has resulted in the dismissal of nearly 3,600 workers, or about 5 per cent of Meta’s global staff, in recent months.

The company continues to invest heavily in AI infrastructure and new products, but the job cuts have sparked criticism from former employees, especially those let go while on leave, raising questions about Meta’s approach to staff welfare.

HP

HP, the global hardware major, has also been affected. In February, the company announced it would cut up to 2,000 jobs as part of its ongoing restructuring plan. This move is linked to increased demand for AI-powered PCs and a broader effort to save costs and refocus the business. HP’s restructuring plan, which began in 2022, now aims to cut a total of 9,000 jobs by the end of 2025.

Salesforce

Salesforce, a global leader in customer relationship management (CRM) software, is another example of a company balancing layoffs with targeted AI hiring. In 2024, Salesforce laid off over 1,000 employees, roughly 1.5 per cent of its global workforce.

At the same time, the company is actively hiring around 2,000 new salespeople focused on AI products and services. CEO Marc Benioff has stated that Salesforce will not be hiring more software engineers in 2025 due to productivity gains from AI, underlining the shift in workforce needs as automation becomes more central to operations.

Workday

Workday, a major provider of human resources and financial management software, has also made significant cuts. The company recently laid off 1,750 employees, or 8.5 per cent of its workforce, as it shifts focus to AI development and responds to customer demand for AI tools. Workday’s leadership has described the move as a strategic realignment, with continued hiring in key areas related to AI. Analysts note that the cuts are part of a broader trend among software vendors to redeploy resources towards AI products and sales, as competition in the sector intensifies.

Autodesk

Autodesk, a leader in design and engineering software, announced the layoff of 1,350 employees, about 9 per cent of its total workforce. The company’s leadership described the decision as a “decisive action” to maintain competitiveness in cloud computing and AI. Autodesk is reshaping its go-to-market division and increasing investment in AI development, aiming to better serve evolving customer needs and improve productivity. The restructuring includes reducing facilities and incurring significant one-time costs, but is seen as necessary for long-term growth.

Duolingo

The trend is not limited to traditional tech companies. Duolingo, the popular language learning app, has shifted towards an “AI-first” approach. In January 2024, Duolingo cut 10 per cent of its contractor workforce as it began using AI tools to create more content. The company’s CEO, Luis von Ahn, stated that headcount will only grow if automation cannot handle the work. While Duolingo insists it cares about its employees, the transition to AI is expected to continue, with hiring slowing and performance reviews now considering AI usage.

Chegg

Chegg, the US-based education technology company, has been particularly hard-hit by the rise of AI. The company recently let go of 248 employees, representing 22 per cent of its workforce, and announced the closure of its US and Canada offices. Chegg’s subscriber base has dropped sharply as students increasingly turn to free AI-powered alternatives like ChatGPT. The company is also scaling back on marketing and product development, expecting to save up to $110 million over the next two years. Chegg’s leadership has acknowledged the existential threat posed by AI, even taking legal action against Google over AI-generated search features that draw traffic away from content-based services.

Cost Effectiveness of AI

The surge in AI-driven layoffs reflects two main factors. First, companies are using automation and AI to handle routine tasks, allowing human workers to focus on higher-value projects. Second, the cost of developing and maintaining AI infrastructure is prompting firms to cut back on headcount to prioritise investment in new technology. While some companies have found that replacing humans with AI is not always straightforward, the overall trend points towards a leaner, more AI-centric workforce in the years ahead.

As the tech industry continues to evolve, the impact of AI on employment remains a topic of debate. While automation promises greater efficiency and innovation, it also raises concerns about job security and the future role of human workers in the digital economy.