What Recent Tech Layoffs Reveal About The 2025 Job Market

Forbes

29-05-2025

In April alone, more than 23,000 tech workers lost their jobs. Klarna, Duolingo, Cisco, and Amazon all made sweeping cuts – but not in the areas you might expect. While some teams are shrinking, others are growing. The 2025 job market isn't collapsing – it's restructuring.
These layoffs aren't just about cost-cutting. They're a signal of how the workplace is shifting: automation is accelerating, skill demands are evolving, and job security is increasingly tied to how adaptable you are.
Here's what the recent tech layoffs reveal – and what you can do about it.
The current wave of layoffs isn't a simple result of poor earnings or pandemic aftershocks.
Companies are streamlining to shift investment into AI and automation. Klarna announced cuts to its customer experience and marketing departments shortly after revealing a major AI chatbot rollout. Cisco trimmed 4,000 roles to focus on AI-enabled networking. Duolingo, despite strong growth, cut staff as it leans into automated content generation.
According to Layoffs.fyi, tech job losses in April 2025 marked the second-highest monthly total since early 2023. These aren't panic layoffs – they're part of a realignment toward a leaner, AI-augmented future.
If you dig into the affected departments, a clear pattern emerges. Customer support, operations, and marketing teams are taking the brunt of cuts – especially where automation is viable. Generalist and mid-level roles, particularly those without tech specialisation, are proving vulnerable. Internal functions like HR, recruiting, and learning and development are also being consolidated or outsourced in many organisations.
The pressure is greatest on roles that don't directly contribute to AI products or data infrastructure – or can be replaced by them.
This doesn't mean you need to be a coder to stay employed. But it does mean you need to understand how your role interacts with emerging tech.
The same companies issuing layoffs are aggressively hiring in other departments.
Salesforce has opened dozens of new roles in AI product strategy, for instance. Even Amazon, after recent cuts, is recruiting for machine learning engineers and data architects.
As Jack Kelly notes in Forbes, AI-driven productivity gains are enabling companies to achieve more with fewer employees, leading to a reduced demand for entry and mid-level roles.
Jobs aren't disappearing – but they are moving up the skill chain.
Tech layoffs are rising — but they reveal a broader shift in where opportunity lies.
Despite headlines, many parts of the job market remain active – and even booming.
AI and machine learning roles continue to grow, with engineers and product managers in high demand. Cybersecurity and compliance are also thriving, particularly in finance and healthcare. Data and cloud infrastructure roles – like DevOps engineers and data analysts – are seeing consistent hiring. And consulting giants like McKinsey and Deloitte are scaling digital transformation and AI advisory teams.
Even public sector and nonprofit tech teams are expanding – especially in climate, healthcare, and education tech.
LinkedIn CEO Ryan Roslansky has highlighted how jobs are evolving faster than ever, noting that 'even if you're not looking to change your job, your job is likely changing on you.' His point reflects a broader trend in the 2025 job market: the most secure careers are those that combine domain expertise with adaptability and emerging tech literacy – particularly AI.
If you're in a role that feels at risk – or just uncertain – the smartest move is to upskill in a direction the market is already heading.
Take Rachel, a mid-level marketing manager affected by a recent restructure. Rather than chasing the same title, she completed a six-week prompt engineering course and began freelancing on generative AI campaigns. Within months, she landed a role leading AI content strategy at a fintech startup. Her path reflects a broader trend: roles that blend business insight with emerging tech are in high demand.
If you're in marketing, explore AI content tools or data-driven growth roles. For those in operations or support, learning automation platforms or customer analytics can offer a competitive edge. HR professionals can gain traction in tech recruitment or people analytics. Platforms like Coursera, edX, and Google Career Certificates offer affordable routes into these growing areas.
McKinsey's 2024 Technology Trends Outlooksupports this shift, noting a 111% year-on-year increase in generative AI job postings and underscoring the value of 'fusion' roles that pair technical fluency with business acumen.
In a 2025 job market shaped by AI, your most valuable assets are adaptability and a skill set aligned with where your industry is going – not where it's been.
If you're job hunting, don't limit yourself to your current title. Ask yourself what parts of your role can't be automated. Identify adjacent skills that are gaining demand. And scan for sectors still investing in talent.
Because the future of work won't belong to those who never face disruption. It will belong to those who know how to pivot through it.