Layoff Tsunami 2025: Over 1.2 Million Jobs Gone Worldwide as Companies Restructure for an AI-Driven Future

The global workforce is in the midst of one of the most devastating layoff waves since the start of the pandemic as 2025 nears an end. Already economists have coined the term “restructuring recession,” where companies are re-imagining themselves to survive the onset of AI.

During the period January-November 2025, the number of jobs for which announcements of cuts were made by employers worldwide got up to 1.17 million, surpassing any yearly figure since the mega-caustic layoff of about 2.2 million during COVID-19 in 2020. This rate-56%, as compared to the corresponding period last year-had risen largely propelled by a perfect AI automation-driven storm coupled with slower global growth, over-hiring in previous years, and cost-cutting in uncertain markets.

Tech, startups, and BFSI bore the brunt, with countries such as the United States and India in pain. From inputs borrowed from Challenger, Gray & Christmas, TrueUp, Inc42; let us make an attempt to unravel the layoff tsunami — and speculate on what it means for future of work.

The Global Layoff Landscape: A Brutal 1.17 Million+ Job Loses

4,286 major layoffs occurred across at least 70 countries in 2025--impacting the recent graduates to the senior executives.

Tech, Results Were the Worst to Bear

• 683 layoffs events
• 207,801 employees were hit
• An average of 613 tech workers were struck every day

Because?

Too much AI has substituted for entire workflow; this has led to coding assistants downsizing some of the developer work, with generative AI killing content creators and customer support teams, and automation rendering data roles unnecessary.

Retail & Warehousing Also Saw Layoffs

Layoffs before June were mostly in sharp rises in the US and UK. Two sectors badly wounded by consumer spending declines in general and e-commerce growth are:

• 145% YoY increase in layoffs in the US.
• 12% Rise in Unemployment Across Advanced Economies (ILO Data)
• Europe, India, and other in-host emerging markets felt the ripples.
• Tech layoffs in Europe were also due to partial regulatory pressure, including DSA fines.
• India saw a lesser demand for clients in its outsourcing-heavy IT sector.
• Start-ups across the globe suffered from funding winter because of imprudent expansion.
• United States: 1.1mn Job Cuts — Public Sector Leads the Fall
• The U. S. alone witnessed 1,099,500 job cuts till October, nearly a 65% rise from 2024. As recompense, November accumulated 71,000 cuts.

The Biggest Casualty from the Public Sector

307,638 government job losses, the most significant mass layoff in U. S. history, was endorsed by the new Federal Department of Government Efficiency Initiative.

Tech Layoffs Hit Hard

141,159 tech jobs lost (17% YoY rise)

In one month, October, 33,000 job cuts were registered.

In the search for lean, smarter operating teams, lay more full-force weight on the tech companies once lean times began; hence, Google, Microsoft, and Intel all trimmed the fat in their teams for AI to demand lean, smart operations.

Retail & Finance Also Struggled

Retail: 88,664 layoffs (double from last year)

The financial industry faced the most cuts at 48,968 (27% increase)

High rates and slow deal flow meant major players like JPMorgan and Citigroup cut there.

India: Silent Layoffs in IT, tough year for startups

India's layoffs were so silent although equally brutal. A silent layoff,—encouraging an employee to exit without an official announcement—was chosen by many companies.