Tech companies cut 245,000 jobs in 2025 amid AI push
What's the story
The global technology sector witnessed a staggering loss of nearly 245,000 jobs in 2025. A report by RationalFX, a UK-based financial services firm, attributes this massive downsizing to economic uncertainty, rising interest rates, and the rapid adoption of AI and automation. The study analyzed layoffs reported by TrueUp, TechCrunch and multiple state WARN databases. It highlights that the trend is part of a larger restructuring process aimed at improving efficiency and profitability while embracing AI-driven productivity.
Job impact
AI and automation: Key drivers of tech layoffs
The RationalFX report highlights that AI and automation were among the most frequently cited reasons for job cuts in 2025. While some companies opted to retrain their employees, others chose to replace roles entirely with these technologies. Alan Cohen, an analyst at RationalFX, said "tech sector layoffs in 2025 displaced hundreds of thousands of workers worldwide as companies accelerated structural resets rather than short-term cost corrections."
Job losses
US tech companies lead global job cuts
The report also reveals that US-based tech companies were responsible for nearly 70% of the world's job cuts in this sector. This resulted in over 170,000 job losses across domestic and international operations of these firms. California was at the forefront with 73,499 layoffs or about 43% of all tech job cuts in the country. Washington followed closely with a reported loss of over 42,000 jobs since January.
Corporate downsizing
Major firms announce significant layoffs
Intel, which had some 109,000 employees at the end of 2024, announced plans to cut its workforce to about 75,000 by year's end (34,000 lay offs). Other companies include Amazon (over 20,000 job cuts), Microsoft (around 19,215 layoffs), Verizon (15% of its workforce or around 15,000 employees) and Tata Consultancy Services (12,000 jobs). BT also announced plans to cut 55,000 jobs by 2030 as part of this transition process.
Corporate adjustments
Accenture and HP announce employee reductions
Professional services firm Accenture also announced plans to cut 11,000 employees in just three months as part of an AI reskilling effort. HP said it would cut 6,000 roles in November last year as part of a wider initiative to integrate AI across its operations. Salesforce CEO Marc Benioff also revealed that the company had reduced its customer support personnel by 4,000 due to the impact of AI on their operations.