Tech Layoffs 2025: Over 1 lakh jobs cut as Microsoft, Google, Amazon lead mass firings; is AI to blame
The global tech industry is facing one of its toughest years in 2025. More than 100,000 jobs have already been cut across major technology companies. Big names like Microsoft, Intel, Google, and Amazon are all reducing their workforces, citing reasons such as slowing growth, rising operational costs, and the need to shift resources toward artificial intelligence (AI) and automation. These job cuts are affecting workers at all levels—from fresh graduates to senior engineers—across different countries and departments.
While companies say the layoffs are necessary to streamline operations and prepare for the future, the impact on employees and the broader tech job market is massive. The shake-up is not just about reducing headcount—it signals a major transformation in how the industry is evolving. Businesses are now focused on becoming leaner and more AI-driven, even if that means letting go of long-standing teams or changing their traditional work models.
Microsoft cuts 9,100 jobs in second layoff of the year
Microsoft has confirmed that it is laying off about 9,100 employees in July 2025. This is the company's second major round of layoffs this year. In May, Microsoft had already let go of 6,000 workers, mainly from engineering and product roles.
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This new wave represents nearly 4% of the company's total workforce and is affecting departments such as Xbox gaming, sales, legal, and teams behind mobile game titles like Candy Crush.
Microsoft says these job cuts are part of a broader plan to reorganize and invest in AI infrastructure, for which it is committing around $80 billion over the next few years. The company is also restructuring its sales teams and outsourcing more work to smaller partners.
Intel slashes factory workforce and shuts automotive unit
Intel, one of the world's largest semiconductor manufacturers, is cutting up to 20% of its factory workforce, which translates to over 10,000 jobs. These layoffs are scheduled for mid-July and include 107 roles in Silicon Valley, specifically at Intel's Santa Clara headquarters.
The company is also shutting down its automotive chip division, which shows that even once-promising product lines are being dropped as Intel tightens its spending.
Intel says the decision is part of its plan to deal with 'financial constraints and affordability goals.' The company has faced falling demand in the PC and server markets and is now trying to shift focus toward AI chips and next-gen computing.
Google cuts 25% of Google TV staff amid budget reductions
At Google, layoffs are affecting more niche product divisions. The Google TV team has seen a 25% reduction, which reportedly accounts for about 75 employees.
The budget for the Google TV unit was cut by 10%, prompting the company to downsize its workforce. Additionally, in June, Google began offering buyouts and voluntary exit packages, signalling that more layoffs may follow later this year.
These actions come as Google, like many other tech firms, shifts more resources toward AI development and away from smaller or lower-priority products.
Amazon begins AI-led downsizing across divisions
Amazon has joined the wave of major
tech layoffs
in 2025, initiating targeted job cuts across several divisions as part of a broader strategy to integrate artificial intelligence into its operations. In June, the company eliminated fewer than 100 roles within its Books division, impacting teams behind Kindle and Goodreads, as it moved to streamline underperforming units. CEO Andy Jassy confirmed in a June memo that Amazon plans to further shrink its corporate workforce, citing the growing role of generative AI in automating repetitive and administrative tasks.
Departments such as customer service, software development, human resources, and middle management are expected to face future cuts as AI tools take over internal processes and reduce the need for multiple layers of oversight.
Since 2022, Amazon has already laid off more than 27,000 employees, and the trend appears to be continuing as the company prioritizes efficiency and technological advancement in a rapidly evolving digital landscape.
Why are so many tech jobs being cut
There are several reasons behind the widespread layoffs in the tech industry in 2025:
Shifting to AI and automation
: Companies are investing billions in AI, cloud infrastructure, and automation technologies. To fund this shift, they are cutting back on roles that don't align with their future direction.
Cost cutting
: Rising interest rates, inflation, and slower growth have forced many companies to tighten their budgets. Layoffs help reduce immediate costs, especially in departments that are no longer seen as essential.
Reorganizing teams
: Many tech firms are changing how their teams work. This includes outsourcing, merging departments, and removing duplicated roles across global offices.
Decline in some product markets
: Demand for products like personal computers, gaming consoles, and smart TVs has decreased. This affects business units tied to these categories, making them prime targets for cuts.
Who is being affected?
These layoffs are impacting a wide range of roles and experience levels, including:
Mid-level developers and engineers at Intel and Microsoft
Marketing, sales, and legal teams
Gaming and entertainment divisions
Regional offices, especially in the US and India
This shows that no job category is fully immune. Even high-performing tech employees are vulnerable if their role is not aligned with a company's new priorities.
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