Are you feeling uncertain about your job in the tech industry? With over 150,000 tech layoffs last year alone – many workers are facing tough times.
Understanding what layoffs mean and why they happen is important for anyone affected.
In this blog, we’ll discuss the reasons behind IT job cuts, the labour laws that protect workers, and what you can do to manage this challenging situation.
This guide will help you make sense of the current situation and prepare better for tech layoffs in 2025.
What is Layoff?
Let’s start with company layoffs meaning.
A layoff happens when a company reduces its workforce to save money or adjust to lower demand for its products or services. It’s not the same as being fired for poor performance; layoffs often occur because the company is facing financial challenges or restructuring.
Employees who are laid off may receive severance pay or unemployment benefits, depending on the situation and local labour laws. While layoffs can be temporary – they can also lead to permanent job loss. This process impacts both employees and the company – causing uncertainty for those affected.
What Do Tech Layoffs Mean?
Tech layoffs refer to companies in the technology sector reducing their workforce due to various reasons like –
- Economic downturns
- Changes in business strategies
- Slowing demand for products and services
Layoff in tech isn’t always a reflection of the workers’ performance but is often tied to a company’s financial challenges or the need to cut costs. Many tech giants, as well as startups, may undergo job cuts to stay competitive or shift focus.
Unfortunately, tech companies lay offs impact thousands of employees – leading to job loss and uncertainty about the future – especially in a rapidly changing industry.
Also Read - Top 70+ Product Manager Interview Questions and Answers
The Reasons Behind IT Layoffs
Are you wondering why layoffs are happening in the IT industry? Well, here are the key reasons behind job cuts in the tech sector.
- Economic Slowdowns
Fears of a recession and economic instability are key drivers of layoffs in the IT sector. During periods of economic uncertainty – businesses often take measures to reduce costs, and cutting staff is a common approach. Tech companies, facing reduced revenue and profits – often turn to layoffs as a cost-saving strategy during these tough times.
- Impact of Artificial Intelligence (AI)
AI is reshaping the tech job market, with companies prioritizing hiring employees with AI-related skills. However, for roles that can be automated, the risk of layoffs increases. It is estimated that 30% of U.S. jobs could be automated by 2030. Also, with more than 8,000 layoffs in India’s tech industry, companies like Paytm and Unacademy are focusing on reducing costs and using AI.
While AI boosts productivity in some areas, it also leads to downsizing in positions that become redundant. Companies like IBM have already announced job reductions as they transition certain tasks to AI.
- Rising Inflation
Inflation has led to increased costs for businesses, forcing many to evaluate their operations. For tech companies that rely on advertising revenue – inflation has reduced spending by advertisers, impacting overall profits. To counterbalance rising costs, companies have had to reduce their workforce, contributing to the spike in IT layoffs.
- Interest Rate Hikes
With the Federal Reserve raising interest rates – borrowing has become more expensive for companies – leading to reduced investment in growth and innovation. This has particularly affected startups which rely on venture capital funding. As investors become more cautious – tech firms face reduced funding, forcing them to scale back their operations, often by cutting jobs.
- Pandemic Overstaffing
During the pandemic, tech companies hired aggressively to meet the rising demand for digital services. As more people worked, shopped, and socialized online, companies expanded their teams to keep up. However, with the return to more normal patterns of behaviour, many tech firms now find themselves overstaffed. As a result, layoffs have become a necessary correction after the pandemic hiring surge.
- Investor Expectations
Investors expect companies to maintain profitability even when revenue growth slows. This pressure has led many tech firms to cut costs by reducing their headcount. Companies like Meta and Alphabet have faced demands from investors to improve efficiency – resulting in significant layoffs. As profit expectations remain high – layoffs are often seen as a necessary step to meet financial goals.
- Post-Pandemic Adjustments
As people return to in-person activities – the demand for certain tech services has decreased. Many employees hired during the pandemic for remote work and digital solutions are no longer needed. Tech companies are now trimming down their workforce to adjust to lower demand – leading to layoffs in roles that were essential during the pandemic but are no longer as critical.
- Silicon Valley Bank Crisis
The collapse of Silicon Valley Bank in 2023 had a ripple effect on the tech industry – particularly for startups. SVB was a key lender to tech startups, and its collapse has made it harder for these companies to secure funding. As a result, many startups are facing financial difficulties – leading to job cuts as they try to stay afloat.
- Industry Maturity
The tech sector has grown rapidly over the past few decades, but it is now reaching a more stable phase. Many companies have already captured a large portion of their target markets – leading to slower growth. With fewer opportunities for expansion, tech firms are focusing on efficiency and profitability – which often includes reducing staff.
Recent Layoffs in the IT Sector (2025)
According to Layoffs.fyi, 179 tech companies have laid off a combined 80,945 employees in 2025.
August Layoffs 2025 – 600+ Employees
| Company | Layoffs | Reason/Details |
| Yotpo | ~200 employees (34%) | Closing Email and SMS marketing units to focus on core products and AI-driven tools. |
| Peloton | 6% of workforce | Sixth round of cuts in a year to strengthen long-term business health. |
| Wondery | ~100 employees | Part of Amazon’s reorganization of audio operations under Audible. |
| Windsurf | ~30 employees + buyouts | AI coding startup, now owned by Cognition, reducing staff after recent acquisition. |
| Kaltura | ~70 employees (10%) | Cost-cutting plan to save $8.5M annually while expanding AI-powered product adoption. |
July Layoffs 2025 – 16,000+ Employees
| Company | Layoffs | Reason/Details |
| Zeen | Full shutdown | Creator-focused social collaging startup closing after struggling to grow its user base. |
| Intel | ~2,400 employees in Oregon | Large-scale cut, nearly five times earlier estimates, affecting the state’s workforce. |
| Lenovo | 100+ U.S. jobs (3%) | Reduction includes roles at its North Carolina campus. |
| ByteDance | 65 employees | Trimming staff in Bellevue, WA, within its TikTok Shop operations. |
| Atlassian | 150 employees | Cuts in customer service and support as upgraded tools reduce support needs. |
| Microsoft | 9,000 employees (<4%) | Global workforce reduction across teams and geographies, following earlier 2025 layoffs. |
| Scale AI | 200 employees (14%) + 500 contractors | Downsizing staff and ending contractor ties amid organizational changes. |
| ConsenSys | 47 employees (7%) | Blockchain firm reducing staff as part of its push toward profitability. |
| Indeed & Glassdoor | ~1,300 employees combined | Parent company Recruit Holdings merging operations and shifting focus to AI. |
| Eigen Labs | 29 employees (25%) | Restructuring at blockchain-focused research startup after launching EigenCloud. |
June Layoffs 2025 – 1,600+ Employees
| Company | Layoffs | Reason/Details |
| Klue | 85 employees (40%) | Vancouver-based AI business intelligence firm trimming staff to cut costs. |
| Microsoft | Undisclosed | Further job cuts affecting tech, marketing, and legal roles after May layoffs. |
| ~75 employees (25% of division) | Downsizing its smart TV team as budgets shift toward AI projects. | |
| Playtika | ~90 employees | Gaming company reducing teams in Israel and Poland after earlier layoffs. |
| TomTom | 300 employees (10%) | Restructuring sales and support teams amid AI transition. |
| Rivian | ~140 employees (1%) | Cuts in manufacturing to streamline operations. |
| Intel | 15–20% of Foundry division | Scaling back Foundry unit and closing its automotive business. |
| Airtime | ~25 employees | Video startup reducing nearly half of its team. |
| Bumble | ~240 employees (30%) | Workforce cut to save $40M and invest in product growth. |
May Layoffs 2025 – 10,000+ Employees
| Company | Layoffs | Reason/Details |
| Microsoft | 6,500+ employees | Workforce reduction of 3% globally. |
| Amazon | ~100 employees | Cuts in Devices & Services division, including Alexa, Echo, Ring, and Zoox projects. |
| Chegg | 248 employees (22%) | Downsizing due to declining web traffic as students shift toward AI-based study tools. |
| Match Group | ~13% of workforce | Reorganization focused on reducing expenses and improving operational efficiency. |
| CrowdStrike | ~500 employees (5%) | Strategic shift to streamline operations and drive toward $10B annual recurring revenue. |
| General Fusion | ~25% of workforce | Downsizing amid internal adjustments; backed by major investors including Jeff Bezos. |
| Deep Instinct | 20 employees (10%) | Small-scale reduction following a similar layoff event in 2023. |
| Beam | ~200 employees | British climate-tech firm shut down after scaling efforts stalled; confirmed via internal sources. |
| Hims & Hers | 68 employees (4%) | San Francisco telehealth firm cutting staff in a move unrelated to U.S. weight-loss drug regulations. |
April Layoffs 2025 – 23,400+ Employees
| Company | Layoffs | Reason/Details |
| Expedia | ~3% of workforce | Tech and product teams affected; follows March marketing staff reductions. |
| Cars24 | 200 employees | India-based auto platform restructures tech and product units. |
| Meta | 100+ employees | Reality Labs cuts focus on VR and hardware teams working on Quest projects. |
| Intel | 21,000 employees (20%) | Major workforce reduction ahead of earnings call under new CEO. |
| GM | 200 employees | EV plant staff cut in Michigan amid industry-wide demand dip. |
| GupShup | 200 employees | Second layoff wave in 5 months to improve operational efficiency. |
| Wicresoft | ~2,000 employees | Shuts China operations after Microsoft ends outsourcing partnership. |
| Several hundred employees | Cuts across Android, Chrome, and Pixel teams under platform restructuring. | |
| Microsoft | Pending layoffs | Potential May cuts targeting middle managers and non-tech roles. |
March Layoffs 2025 – 8,834+ Employees
| Company | Layoffs | Reason/Details |
| Block | 931 employees (8%) | Internal restructuring; not driven by finances or AI replacement. |
| Acxiom | 130 employees (3.5%) | Reductions after IPG and Omnicom merger approval. |
| Siemens | 5,600 employees | Global workforce cuts in EV charging and automation units to sharpen focus. |
| Otorio | 45 employees (50%+) | Layoffs followed acquisition by Armis in the cybersecurity space. |
| NASA | Undisclosed | Closure of DEI and tech policy offices; part of a federal reorganization. |
| Zonar Systems | Unknown | Layoffs hinted at through staff posts; no official confirmation yet. |
| Wayfair | 340 employees | Further tech division layoffs amid continued restructuring. |
| TikTok | Up to 300 employees (10% in Ireland) | Dublin roles affected; strategic refocus underway. |
| Ola Electric | Over 1,000 employees/contractors | Second round of major layoffs to curb expenses. |
| ANS Commerce | Full shutdown | Flipkart-acquired startup ceased operations within three years; staff count unknown. |
February Layoffs 2025 – 16,234 + Employees
| Company | Layoffs | Reason/Details |
| HP | Up to 2,000 employees | Part of its “Future Now” strategy aiming to cut $300M in costs this fiscal year. |
| Autodesk | 1,350 employees (9%) | Restructuring GTM operations; trimming real estate footprint without closures. |
| Undisclosed | Cuts in HR and cloud teams; U.S. staff offered voluntary exit program. | |
| eBay | Dozens in Israel | Estimated 10% of Israeli staff let go for operational consolidation. |
| Dayforce | 5% of total workforce | Workforce streamlined to improve efficiency and drive long-term growth. |
| Zendesk | 51 employees | San Francisco HQ affected; follows prior reductions in 2023. |
| Logically | Dozens | Cost-saving actions to stay viable while tackling misinformation. |
| Blue Origin | Over 1,000 employees (10%) | Cuts mostly in engineering and program management roles. |
| Unity | Unknown | Another layoff round, but specific impact yet to be confirmed. |
| Bird | 120 employees (33%) | Layoffs come after previous 2024 cuts and business model adjustments. |
| Workday | 1,750 employees (8.5%) | Broad job reductions amid realignment of internal functions. |
| Okta | 180 employees | Follow-up to last year’s workforce reduction of 400 people. |
| Cruise | 50% of workforce | Company preparing to shut down, leadership also departing. |
| Salesforce | 1,000+ employees | Downsizing continues despite ongoing hiring for AI-related roles. |
January Layoffs 2025 – 2,403+ Employees
| Company | Layoffs | Reason/Details |
| Cushion | Full shutdown | Ceased operations; CEO announced closure on LinkedIn. |
| Amazon | Dozens in comms department | Downsizing aimed at speeding up execution and tightening customer focus. |
| Stripe | 300 employees | Leaked memo reveals cuts, even as headcount expansion is expected this year. |
| Pocket FM | 75 employees | Workforce reduction to support long-term business stability. |
| Aurora Solar | 58 employees | Cuts driven by economic pressures and solar market instability. |
| Meta | 5% of workforce | Internal memo suggests cuts for “low performers” ahead of a demanding year. |
| Wayfair | 730 employees (3%) | Exiting German market, shifting focus toward in-store retail partnerships. |
| Icon | 114 employees | Workforce realigned to focus more on robotic printing systems. |
| Altruist | 37 employees (10%) | Despite hiring plans, company trims team to stay lean and focused. |
| Aqua Security | Dozens of employees | Global workforce reshuffled as part of strategic planning. |
| Level | Full shutdown | Fintech firm closed after failing to secure a buyer. |
Labour Law Regarding IT Layoffs
In India, the Industrial Disputes Act of 1947 (IDA) deals with layoffs – but it doesn’t cover IT workers. The tech industry in India is primarily governed by individual employment contracts.
Here’s an overview of the legal framework that applies to layoff in tech:
What Is Layoff in Labour Law?
Under the Industrial Disputes Act, 1997 – Section 2 (kkk) – a layoff is defined as a situation where an employer cannot provide work to employees due to various factors. Importantly, layoffs are temporary measures, distinct from retrenchments, which signify permanent job loss.
Conditions for Implementing Layoffs
Before laying off workers, employers must meet certain rules under the Industrial Disputes Act:
- Employers must show they can’t provide work due to various challenges.
- Only employees listed on the company’s roll are eligible for layoffs.
- Layoffs should be temporary, not permanent job cuts.
- Layoffs should result from issues like shortages of power, machinery, or natural disasters.
Industrial Disputes Act (IDA) and IT Layoffs
The IDA explains what a layoff is, but it mainly applies to workers in industries like manufacturing or construction. It doesn’t apply to IT employees or those in managerial or supervisory roles.
The law focuses on “workmen,” which refers to employees who perform manual or technical work. Most IT workers and higher-level employees are not included under this definition, so they can’t use the IDA for legal protection when facing layoffs.
Also Read - Top 10+ IT Companies Offering Permanent Work from Home (2024)
Employment Contracts in IT
Most IT professionals work under detailed employment contracts. These contracts outline the rights and obligations of both the employee and the company. If you’ve been laid off, your first step is to review the contract to ensure all agreed-upon conditions were followed, including notice periods, severance pay, and other benefits.
Definition of “Workman”
While the IDA defines layoffs and offers protection for “workmen,” this term usually refers to manual labourers or technical workers in industries like manufacturing. Most IT employees, especially those in managerial or supervisory roles, are not included under this law. However, certain technical roles like developers or coders might still be considered “workmen” depending on their job duties.
Labour Court for Workmen
If you fall under the definition of “workman” as outlined by the IDA, you can take your case to the labour courts. The law specifies that a workman is someone engaged in manual, skilled, technical, or operational work.
Employees who meet this criterion and have worked for more than 240 days in a year are entitled to protection under the IDA. This means the company cannot terminate them without following proper procedures, such as obtaining government permission.
Legal Options for Employees
Even though the IDA might not apply, employees still have legal options if they feel they’ve been laid off unfairly or if their company hasn’t followed the terms of their contract.
If your employer doesn’t follow the agreed terms for layoffs – you can file a civil lawsuit for breach of contract. For instance, if the contract specifies a three-month severance package but the company fails to provide it, you can sue for damages under the Indian Contract Act, 1860. However, civil cases can be time-consuming and expensive.
Also Read - Silicon Valley of India: How Bangalore Became The Thriving Tech Hub?
Compensation Rules for Lay off in Labour Law
If employees have worked continuously for 12 months or more before being laid off, they are entitled to certain benefits. According to Section 25C of the Industrial Dispute Act, they should receive half of their basic salary along with a dearness allowance (an extra amount given to help deal with the rising cost of living).
Other Relevant Laws
Several other laws also deal with laying off employees and terminations. These include:
- The Industrial Relations Code (IR Code) which covers issues related to employment terms and disputes.
- The Industrial Employment (Standing Orders) Act of 1946 (IESA) which outlines conditions for terminating employees.
- The Shops and Establishments Act (SEA) which regulates working conditions in smaller businesses, including IT companies.
Also Read - Tier-2 Cities Emerging As The New Tech Cities in India
How to Avoid Tech Layoffs?
As a tech employee in India, avoiding layoffs requires proactive steps to stay valuable in your role. Here are some tips to help you stay secure if companies are laying off.
- Upskill Continuously
Technology evolves rapidly. Focus on learning new skills that are in demand, like AI, cloud computing, and cybersecurity. Take online courses or certifications to stay competitive.
- Network Internally and Externally
Build strong relationships with colleagues, mentors, and industry peers. Networking increases visibility and helps you stay informed about internal opportunities or shifts in the company.
- Show Flexibility
Be open to taking on new roles or responsibilities. Adaptability is key to demonstrating your value during uncertain times. Offering to work on projects outside your usual tasks can show your commitment.
- Track Your Contributions
Regularly document your achievements and contributions to the team or company. This helps during performance reviews or if jobs layoffs are being discussed – giving you leverage to highlight your impact.
- Stay Informed About the Company’s Health
Pay attention to news about IT sector layoffs and your company’s financial health. Knowing if they’re struggling can help you plan ahead, like considering job searches early.
- Seek Feedback Regularly
Don’t wait for yearly reviews. Ask for feedback from your managers often. Use it to improve and align your work with the company’s goals.
- Look for Better Job Opportunities
Keep an eye on job openings through platforms like Hirist. It’s an excellent resource for finding tech roles that align with your expertise and career goals.
Also Read - A Complete Guide to IT Job Fairs in India
What to Do When Laid Off?
Being laid off can be overwhelming – but it’s important to stay calm and focused on your next steps. Here’s what laid off workers can do to move forward:
- Review Your Contract
Carefully go through your employment contract. Check if you’re entitled to severance pay, notice periods, or any other benefits when it comes to IT industry layoffs.
- Claim Benefits
Some companies provide health insurance or severance packages. Make sure to claim all available benefits to help you during the transition period.
- Check Legal Options
If you feel the layoff was unfair – you can explore legal remedies. Consult a lawyer to understand if your termination violated your contract or employment laws.
- Update Your Resume
Take the time to refresh your resume. Highlight your key achievements and skills, making sure it’s ready to send to potential employers.
- Reach Out to Your Network
Let your professional contacts know you’re available for new opportunities. Networking can open doors to job leads and recommendations.
- Practice Self-Care
Layoffs can be stressful, so take care of your mental and physical health. Exercise, meditate, or take time to relax and recharge before diving into your job search.
- Upskill
Use this time to learn new skills or improve existing ones. Enroll in online courses or certifications that can boost your employability during job cuts in IT sector.
- Explore Job Portals
Visit job platforms like Hirist to find new roles that match your expertise. Regularly check for openings in your field and apply for positions.
Also Read - Top Trending H1B Visa Sponsorship Jobs in Tech Sector
What is Recession?
A recession is a period when the economy slows down for an extended time – often lasting several months. During a recession, businesses may struggle, unemployment rates rise, and people spend less money.
A Recession in tech industry means companies face slow growth, reduced profits, and may cut jobs. Startups and big tech firms alike may struggle to stay competitive – affecting innovation and investment in new technologies during tough economic times.
The Relation between Recession and Tech Layoffs
Recession and layoff in tech are closely linked. When the economy slows down, companies across industries, including tech – face lower demand and reduced profits. To cut costs, many tech firms reduce their workforce – leading to widespread layoffs.
This is often seen as a necessary move to stay afloat during tough times. As a result, IT professionals can lose their jobs even if they perform well. The uncertainty in the market also causes companies to pause hiring and delay projects. The impact of the layoff recession on creates challenges for both workers and businesses – affecting the industry’s overall growth.
Also Read - Recession in IT Sector 2024-25: When Will It Start and End
IT Companies That Are Laying Off in 2025 (Updated)
Firing in IT companies continues in 2025 – with over 80,000 let go by August. Here’s the list of IT companies firing employees.
| Company | Details of Layoffs |
| Microsoft | Laid off over 6,500 employees, affecting 3% of its global workforce. Additional cuts in middle management expected in May. |
| Amazon | Laid off around 100 employees from its Alexa, Echo, Ring, and Zoox teams. Also let go of dozens from its communications department in January. |
| Google (Alphabet) | Cut several hundred employees across Android, Chrome, and Pixel teams. Earlier in February, also reduced headcount in HR and cloud units. |
| Meta | Laid off over 100 employees from Reality Labs in April. In January, cut 5% of its workforce targeting underperforming teams. |
| Intel | Cut 21,000 jobs, accounting for 20% of its workforce, ahead of earnings under a new CEO. |
| Salesforce | Laid off more than 1,000 employees in February, continuing restructuring despite ongoing AI hiring efforts. |
| Wayfair | Laid off 730 employees in January during exit from the German market, followed by 340 more in March within its tech division. |
| HP | Laid off up to 2,000 employees in February as part of its “Future Now” cost-saving initiative aimed at reducing $300 million in expenses. |
| Autodesk | Cut 1,350 employees, or 9% of its workforce, in February while restructuring go-to-market teams and trimming office space. |
| Stripe | Laid off 300 employees in January; internal memo confirmed downsizing while planning for headcount expansion later in the year. |
| Workday | Reduced workforce by 1,750 employees (8.5%) in February during a broad functional realignment. |
| Cisco | Layoffs from late 2024 expected to impact over 6,000 employees globally in 2025, following a 5–7% workforce reduction strategy. |
Also Read - Job Resignation Letter Format, Samples and Examples
Wrapping Up
To wrap up, understanding tech layoffs in 2025 is important for everyone in the industry. Knowing the reasons behind these layoffs and your rights can help you prepare. If you’re looking for new jobs, visit Hirist. It’s a great place to find the best tech jobs that fit your skills and goals.
Also Read - Top 15+ Most Common GD Interview Topics with Answers
FAQs
What are mass lay offs?
Mass lay offs refer to a large number of employees being let go at once, often due to company issues.
What are big tech layoffs?
Big tech layoffs happen when large technology companies reduce their workforce significantly, usually for financial reasons.
Are there any upcoming layoffs?
Upcoming layoffs may be announced by companies due to economic factors; stay updated through news sources.
What is corporate downsizing?
Corporate downsizing is when a company reduces its size and workforce to improve efficiency or cut costs.
What does employee retrenchment mean?
Employee retrenchment is the process of laying off workers to reduce expenses, often during tough economic times.
How can I find layoff today?
To find layoff today, check news websites or job boards that report real-time job cuts across industries.
Where can I find layoffs last 24 hours?
For layoffs last 24 hours, refer to news articles or social media updates tracking recent job cuts.
Why are start up layoffs increasing in the tech sector?
Start up layoffs are increasing in the tech sector due to rising costs, reduced funding, and market uncertainty, forcing companies to cut jobs.
What were the number of tech layoffs 2024?
In 2024, more than 152,000 people lost their jobs across 550+ tech companies, based on data from Layoffs.fyi.
Are there layoffs in USA?
Yes, there are ongoing layoffs in USA across various industries, impacting many workers this year.
