Global tech-sector layoffs surpass 244,000 in 2025

The global technology sector eliminated some 244,851 jobs in 2025, according to a report from RationalFX. The U.K.-based financial services company says the worldwide downsizing reflects how companies in 2025 restructured their operations to focus on efficiency, profitability, and AI-driven productivity.

The RationalFX analysis, which examined layoffs reported by TrueUp, TechCrunch, and multiple state WARN databases, points to economic uncertainty, elevated interest rates, and accelerating AI and automation adoption as reasons that 2025 marked “another year of sustained downsizing following the post-pandemic correction that began in 2022.”

Companies indicated that AI and automation were among the most frequently cited drivers for layoffs in 2025. Some companies retrained employees when faced with the technology; many replaced roles entirely, RationalFX reports.

“Tech sector layoffs in 2025 displaced hundreds of thousands of workers worldwide as companies accelerated structural resets rather than short-term cost corrections,” said Alan Cohen, analyst at RationalFX, in a statement. “While macroeconomic pressures such as high interest rates, trade restrictions, and geopolitical uncertainty continued to weigh on business confidence, the dominant force behind last year’s job cuts was the rapid adoption of automation and artificial intelligence.”

The analysis also uncovered that U.S.-headquartered technology companies were responsible for the majority of job losses, accounting for approximately 69.7% of all global tech layoffs. This resulted in more than 170,000 employees being cut across both domestic and offshore operations from U.S. tech companies.

California leads U.S. state layoffs

California spearheaded layoffs in the U.S. tech sector this year, with 73,499 job cuts accounting for roughly 43.08% of all tech layoffs in the country, according to the RationalFX report. The report also points out that Washington has seen 42,221 tech jobs cut since the start of the year, accounting for 24.74% of all U.S. tech layoffs.

The RationalFX report summarizes the U.S. states with the highest tech layoffs in 2025:

• California: 73,499 jobs (43.08%)
• Washington: 42,221 jobs (24.74%)
• New York: 26,900 jobs (15.8%)
• Texas: 9,816 jobs (6%)
• Massachusetts: 3,477 jobs

Intel leads workforce reductions

Intel contributed the single largest number of layoffs in 2025, according to the RationalFX report.

The semiconductor stalwart, which employed roughly 109,000 people at the end of 2024, announced plans to reduce its headcount to around 75,000 by the end of 2025, representing a workforce reduction of approximately 34,000 roles. Other major U.S. tech companies that experienced large-scale layoffs in 2025, according to the report:

• Amazon: more than 20,000 job cuts
• Microsoft: approximately 19,215 layoffs
• Verizon: 15,000 employees (15% of workforce)
• Tata Consultancy Services: 12,000 jobs
• Accenture: 11,000 employees
• IBM: 9,000 job cuts
• HP: 6,000 roles (10% of workforce)

“Unlike earlier layoff waves driven by over-hiring, many of 2025’s reductions were permanent, with entire roles eliminated as companies rebuilt around AI-first operating models,” Cohen said. “Despite heavy investment in automation, these restructurings have not always delivered immediate efficiency gains, highlighting a growing gap between expectations around AI-driven productivity and the realities of large-scale workforce transformation.”

AI and automation drive job elimination

The RationalFX report found that AI and automation were among the most frequently cited drivers of layoffs in 2025. With some companies retraining staff, others looked to replace roles entirely, particularly in data processing, customer support, HR, and administrative functions, the report states.

In October 28, Amazon confirmed 14,000 job cuts, saying the company was now focusing on AI and adapting to the transformative technology. In 2023, U.K. telecommunications provider BT said it would be cutting 55,000 jobs, with the number representing both hired employees and contractors by 2030. “By the end of March 2025, BT employed around 85,300 people, roughly 6,400 fewer than at the same time in 2024,” according to the RationalFX report.

Professional services company Accenture announced a reduction of 11,000 employees over just three months, as part of an AI reskilling effort. HP announced in November 2025 that it would cut 6,000 roles as part of a wider initiative to integrate AI across its operations. Salesforce CEO Marc Benioff also announced the company reduced its customer support personnel by 4,000 because of AI’s impact on Salesforce’s operations.

“Layoffs are not likely to end abruptly in 2026, with structural pressures, including automation, strategic pivoting, and economic caution, suggesting that workforce reductions will persist through at least the first quarter of the year,” RationalFX’s Cohen said. “While certain sub-sectors will likely continue to contract, other areas (especially AI-related roles) could see robust hiring.”