Tech Layoffs Surge in 2025: Microsoft, Intel, IBM Among Major Companies Slashing Jobs Amid AI Restructuring
Microsoft: Major Cuts in Gaming and Cloud
Microsoft has confirmed one of its most significant layoffs this year, impacting 9,100 employees — about 4% of its global workforce. The cuts are hitting the Xbox and gaming units particularly hard. According to Xbox chief Phil Spencer, the company is 'ending or decreasing work in certain areas' to prioritize strategic growth. Additionally, King, the Candy Crush developer, is letting go of around 200 staff, Bloomberg reported.
This follows earlier layoffs in June, where Microsoft reduced 305 roles. Over 6,000 positions have already been eliminated this year, with reports from Business Insider stating that employees were given immediate system access termination and, in some cases, denied severance or continued healthcare coverage.
These layoffs continue a trend from 2024, where nearly 1,900 Activision Blizzard employees were let go, alongside cuts in Azure, HoloLens, and Xbox teams.
Intel: Deep Cuts and Structural Overhaul
Intel, under the leadership of new CEO Lip-Bu Tan, is undertaking an aggressive internal overhaul. This month, 107 roles will be eliminated at its Santa Clara headquarters. The company has also decided to shut down its automotive chip division in Germany, nearly wiping out the entire team.
More drastic changes are expected, with insiders suggesting up to 20% of the global workforce could be laid off — including senior engineers and executive roles. Tan emphasized a shift to leaner teams and noted, 'Intel must stop tying leadership success to large headcounts and start empowering smaller, more focused teams.'
Amazon: Multiple Waves of Job Cuts
Amazon is also continuing its workforce reduction. Its most recent layoffs affected staff in its Books business — including Kindle and Goodreads — impacting fewer than 100 employees. But this marks the fourth round of cuts in 2025, affecting departments like Devices & Services, Wondery, and Communications.
Looking ahead, Financial Express reports that Amazon may cut around 14,000 managerial roles globally — nearly 13% of its leadership — as part of broader cost-saving efforts.
IBM: Automation Takes Over HR
IBM's layoffs in 2025 amount to around 8,000 jobs, largely from its Human Resources department. AI-driven automation has taken center stage at the company, replacing roles that previously involved routine tasks. In a recent move, IBM replaced 200 HR jobs with AI systems designed to handle employee queries, internal documentation, and data processing.
Other Companies Following Suit
Google has trimmed teams within its Platforms and Devices unit, following earlier layoffs in Cloud and HR. Meta started the year by removing 5% of its staff, targeting "low performers." Additional cuts followed in its Reality Labs division.
Outside the big players, the downsizing trend spans the industry:
Infosys terminated 240 entry-level employees over failed internal assessments.
Canva laid off technical writers in favor of AI-generated content.
HP, Blue Origin, Siemens, Match Group, and CrowdStrike have all made significant cuts.
Why the Surge?
Several factors are driving these layoffs: inflation, high interest rates, reduced spending, and a shift toward automation and AI. While roles are being slashed, many firms continue to hire in AI and emerging tech — pointing to a dramatic redefinition of the industry's workforce.
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