Google, Microsoft, Amazon, IBM Slash Thousands of Jobs in 2025: Key Reasons Behind the Tech Layoff Wave

The global tech industry is witnessing a fresh wave of massive job cuts in 2025, with tech giants like Google, Microsoft, Amazon, and IBM laying off thousands of employees. So far, over 61,000 tech jobs have been slashed across 130+ companies, according to Layoffs.fyi, signaling a widespread restructuring across the industry.

From cost-cutting and AI-driven automation to organizational reshuffles, here’s a breakdown of the biggest layoffs and the key reasons behind them.

🔻 Microsoft: 6,000 Jobs Cut as Streamlining Continues

Microsoft announced on May 13, 2025, that it is cutting 6,000 jobs, marking its largest workforce reduction since 2023. These layoffs affect multiple departments, including around 2,000 roles in Washington state.

The company explained that the move is part of an internal realignment to streamline management and invest more in engineering talent rather than administrative roles. This restructuring also aligns with Microsoft’s broader strategy to enhance operational agility and focus on AI-based innovation.

🔻 Google: Cuts Across Android, Pixel, and Chrome Divisions

Google has let go of several hundred employees in 2025. The layoffs primarily affect teams working on Android, Pixel, and Chrome, following the consolidation of the company’s Platforms and Devices units last year.

Earlier in January, Google also rolled out a voluntary exit program targeting employees from the People Operations and Cloud divisions. Severance benefits included up to 14 weeks of base pay plus one additional week for each year of service.

🔻 IBM: 8,000 Employees Laid Off as AI Replaces HR Functions

IBM’s shift toward artificial intelligence and automation has triggered the layoff of approximately 8,000 employees, especially within its Human Resources (HR) department. Reports suggest that about 200 HR positions were directly replaced by AI-driven solutions.

Despite the layoffs, CEO Arvind Krishna has stated that IBM’s total workforce has increased, with savings from automation being reinvested into high-impact departments like marketing, software development, and sales.

🔻 Amazon: Downsizing Devices and Services Division

Amazon has recently slashed 100 jobs in its Devices and Services unit, which includes Alexa, Kindle, Echo, and the Zoox autonomous vehicle program. These layoffs are intended to better align internal teams with evolving product goals and optimize operational efficiency.

Sources also indicate that more internal reshuffling could follow as Amazon looks to reduce overhead and accelerate future tech developments.

🔻 Upcoming Xbox Layoffs at Microsoft

Insider reports from Bloomberg suggest that Microsoft’s Xbox division is bracing for a fresh round of layoffs. This will mark the fourth major staff reduction since early 2023 and may coincide with the shutdown of additional game studios and internal teams.

The move is expected to be part of Microsoft’s larger reorganization strategy aimed at long-term profitability and resource optimization in the gaming segment.

📉 What’s Fueling the 2025 Tech Layoff Wave?

Several factors are contributing to the ongoing tech job cuts:

Sluggish revenue growth across major companies

Global economic instability and inflationary pressures

Accelerated adoption of AI and automation, replacing conventional roles

Efforts to streamline operations and reduce costs post-pandemic

Shifting strategic priorities toward core engineering and product innovation

💡 Final Thoughts

As AI technologies reshape the tech landscape, companies are being forced to make tough decisions to stay competitive. While mass layoffs in tech 2025 are causing concern, many firms are also investing in upskilling, product innovation, and long-term automation gains.

Stay tuned for updates as we continue to track the latest developments in tech employment and company restructurings.