The global information technology (IT) sector continues to witness a wave of job cuts in 2025, following a period of mass hiring during the COVID-19 pandemic. A new report by Trueup reveals that more than 62,000 employees have been laid off across 284 IT companies in the first five months of the year. Tech giants such as Google, Microsoft, Intel, and Apple are among the major players slashing jobs across various departments.
While the scale of layoffs appears to have reduced compared to 2024—when approximately 2.4 lakh tech workers lost their jobs—the trend remains concerning. In May 2025 alone, over 16,000 employees were let go, suggesting that the sector is still grappling with post-pandemic economic realignments.
Experts attribute these layoffs to global geopolitical tensions, ongoing wars, and a volatile economic climate marked by high inflation, interest rates, and uncertainty. These factors have compelled tech companies to cut spending, focus on profitability, and restructure their operations to remain competitive.
Additionally, the race for dominance in AI technology is reshaping workforce strategies. Many companies are reducing traditional roles while investing heavily in AI development, leading to reorganisation-driven layoffs.
Microsoft recently laid off more than 6,000 employees, targeting middle management roles as part of a broader effort to simplify its organisational structure and increase managerial span of control. CEO Satya Nadella clarified that the decision was based on structural changes, not individual performance, and aligns with the company’s push to bolster its AI capabilities.
Google, on the other hand, has cut hundreds of roles in its Global Business Organisation and software divisions, including Pixel, Android, and Chrome teams. In May alone, around 200 employees from its business operations were shown the door.
Meta, the parent company of Facebook, Instagram, and WhatsApp, is also set to eliminate over 3,000 jobs this year. CEO Mark Zuckerberg cited a company-wide restructuring and an effort to “raise performance standards” as the primary drivers behind the layoffs. Teams in Reality Labs, including Oculus Studios—responsible for VR content and the Supernatural fitness app—have been particularly affected.
Despite the downturn, many of these companies continue to hire in AI and engineering roles, reflecting a shift in priorities rather than a full-scale contraction. The evolving dynamics underscore a major transformation in the global tech industry, as firms adapt to economic pressure and the fast-changing landscape of artificial intelligence.
