SAN FRANCISCO – Tech Giants known for driving progress and providing jobs are seeing huge changes in 2025. Major companies such as Microsoft, Google, IBM, and smaller businesses like Bumble have announced job cuts impacting more than 76,000 employees across over 130 firms, according to NDTV.
Economic challenges and the fast spread of artificial intelligence (AI) are behind these changes, marking a shift in the industry’s direction. As companies look for ways to automate and reduce costs, many traditional jobs are disappearing, leaving thousands of workers facing an uncertain future.
Microsoft has led this round of changes, cutting 6,000 jobs in May 2025, its largest round since 2023. Nearly 2,000 roles were lost in Washington state, mainly targeting middle management and back-office positions, as the company pushes to flatten its structure and focus on engineering. Another wave of layoffs, expected to hit thousands in sales, is planned for July.
People close to Microsoft say its heavy spending on AI, especially in cloud and business services, is reshaping its workforce. An internal memo shared that the company wants to make decisions faster and keep teams in line with its main goals, reflecting a larger move across the industry to work more efficiently.
Google Cuts Jobs
Google has also reduced its team. In May, the search leader let go of 200 staff from its Global Business Organisation, after earlier cuts affected its Android, Pixel, and Chrome teams. These followed a huge 12,000-person layoff in 2023, as Google works to adapt its business to the changes brought by AI in search and advertising.
A spokesperson told Reuters that the goal was to boost teamwork and improve customer service. Still, the growing focus on hiring AI talent over traditional roles shows Google is shifting towards automation.
IBM has taken a strong approach to AI, laying off about 8,000 people, mostly in Human Resources. CEO Arvind Krishna explained at IBM’s annual Think conference that AI agents now handle many tasks, from answering staff questions to paperwork, cutting the need for human HR support.
Krishna told The Wall Street Journal, “We’re using AI to make our processes faster.” While IBM says its overall staff numbers have risen, with savings put into software and sales hiring, the layoffs are clear proof that AI can replace jobs faster than it creates new ones in some areas.
Bumble Slashed 240 Jobs
Smaller companies aren’t immune. Bumble, based in Austin, Texas, announced it would cut 30% of its staff, around 240 jobs, to save $40 million each year. That money will fund new product features and more AI-driven tools, according to a filing.
Bumble’s decision matches a wider trend where even niche firms change their teams to stay ahead in an AI-focused market.
The overall data is tough to ignore. Industry experts say more than 61,000 tech jobs vanished by mid-May, with the number set to reach 76,000 by June. Intel tops the list with plans to cut 25,000 roles, almost a fifth of its staff, as it reorganises under new CEO Lip-Bu Tan.
Amazon has removed 100 jobs from its Devices and Services group, which includes Alexa and Kindle. Cybersecurity company CrowdStrike has cut 5% of its staff to improve profits. These losses, covering hardware, software, and services, show how deeply AI and the economy are affecting the industry.
AI brings both progress and disruption. While it helps companies automate tasks and boost output, it also changes or removes many jobs. IBM’s Krishna pointed out that AI in HR has wiped out hundreds of roles, yet the company is still hiring in fast-growing fields like quantum computing. Google’s changes also put skilled AI experts ahead of traditional business teams, showing the industry’s changing needs.
AI’s Changing Everything
Oliver Shaw, CEO of Orgvue in the UK, told CCN.com that AI is automating work and changing job roles everywhere, which reduces the need for some skills and forces companies to rethink their teams.
Public reaction has been strong. On X, the hashtag #TechLayoffs2025 has trended as people criticise tech giants for putting profits before workers. Posts highlight Microsoft’s report that 30% of its code now comes from AI, raising concerns that even tech roles are at risk.
Many believe the rush to use AI, while good for efficiency, raises serious questions about job security and fair pay. One user wrote, “At this rate, people will be begging for houses without smart gadgets,” showing how worried some are about technology’s growing influence.
The job losses have political effects, too. Lawmakers are under pressure to help, with calls for better unemployment support and retraining for those who lose work.
AI becomes central to business
The McKinsey Global Institute warns that by 2030, up to 30% of US jobs could be automated, with 12 million people facing job loss. This highlights how important it is to have strong plans for helping workers switch careers.
There are some signs of hope. IBM is using its AI savings to hire for technical roles, and Microsoft is focusing on engineering hires, indicating a shift in job types rather than a full-scale reduction. Severance packages and job help from companies like Bumble and Meta offer some relief, but the bigger trend raises real questions about the future of jobs as AI becomes central to business.
As leading tech firms deal with tough economic times and fast-moving technology, one message is clear: being flexible and efficient is key. The 2025 cuts mark a turning point, pushing the sector to rethink how it does business. Workers now face the task of learning new skills for a world where AI drives change. The changes in the tech sector will continue, and their effects will be felt in the wider workforce for years to come.
Sources: Reuters
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