Tech Layoffs Predictions for 2025: Is Your Job at Risk?

Why Trust Techopedia

Mark Zuckerberg famously declared that 2023 was the ‘year of efficiency’ as 264,220 tech industry layoffs from 1,193 companies. Layoffs in tech continued at a slower pace into 2024, with 150,034 losses across 539 tech companies. But what does this mean for tech layoffs in 2025?

Rather than AI coming to take people’s jobs, its ‘efficiency’ flirting with buzzword status, as Google CEO Sundar Pichai uses it to justify Google layoffs with the cutting of 10% of managerial roles. Amazon layoffs also continue, with 14,000 managerial positions planned to be cut, saving the company $3 billion annually.

With Big Tech facing multiple antitrust cases in 2025, we continue tracking tech layoffs and ask industry experts for their verdict. What can tech workers expect from 2025?

Key Takeaways

  • Tech industry layoffs slowed from 264,220 in 2023 to 150,034 in 2024.
  • Experts say a Pandemic-era over-hiring boom contributed significantly to layoffs.
  • Companies continue cutting jobs while heavily investing in AI development.
  • Our tech layoffs predictions for 2025 suggest that AI, cybersecurity, and data roles will remain in demand.
  • Tech company layoffs are expected to stabilize by late 2025.

Why Were There So Many Tech Layoffs in 2024?

  • Intel: 15,000 layoffs
  • Cisco: 10,000 layoffs
  • SAP: Up to 8,000 layoffs
  • IBM: 8,000 layoffs
  • Dell: 6,000 layoffs
  • Xerox: 3,000 layoffs

2024 will be remembered as a bad year for the old guard in tech. Although artificial intelligence (AI) might not be to blame for taking all of the jobs, many tech companies are guilty of making cuts so they can invest heavily in AI.

Prominent examples of this shift are Intel, which is axing 15,000 workers, or 10% of its workforce, across 2024 and 2025 while spending billions on AI chip development, and Cisco, which famously cut 10,000 jobs while launching a $1 global investment fund for AI startups.

Elsewhere, SAP revealed it was investing €2 billion a year in AI while announcing plans to cut up to 8,000 jobs.

Advertisements

IBM also followed the trend with plans to replace 8,000 jobs with AI. CEO Arvind Krishna hinted that AI and automation could replace up to 30% of back-office roles within five years.

Unfortunately, large-scale job losses could be found everywhere as the old guard battled to stay relevant, from Dell shedding 6,000 jobs to Xerox eliminating 3,000 roles.

Techopedia turned to industry experts to ask for their insights and whether more tech layoffs are coming.

Industry Leaders Warn Against Short-Term Thinking

What is the root cause behind the ongoing tech job cuts? Many experts believe the hiring boom of 2020 has delivered a post-pandemic reality check, while others point toward market uncertainty.

Tom South, Director of Organic & Web, Epos Now, blames the rise in tech layoffs in 2024 on a challenging macroeconomic environment — including historically high inflation and combative interest rate hikes — but said AI could be a boon as well as a threat:

“Although McKinsey data suggests that up to 30% of current working hours in the U.S. could be automated by 2030, the World Economic Forum expects that artificial intelligence will create around 12 million new jobs by 2025.

“As the capabilities of AI become better understood, we’re set to see more growth and job opportunities enter the industry.”

Itamar Golan, co-founder and CEO of Prompt Security, told Techopedia:

“Economic cycles, such as market inflation, often drive layoffs and occur periodically due to broader economic conditions rather than solely because of AI adoption.

 

“These shifts are part of recurring market dynamics.”

Arvind Rongala, CEO of Edstellar, believes these cuts resulted from excessive hiring in the digital age of the pandemic, economic cooling, and companies going digital.

“Budgetary pressures made the trend all the more pronounced. Companies such as Meta, for instance, shrank when they stopped thinking about growth and started thinking about AI-driven productivity.”

Dev Nag, CEO of QueryPal, a support automation company, also believes current tech layoffs are a correction following excessive pandemic-era hiring vs. AI-driven displacement.

“When digital service demand surged during lockdowns in 2020-2022, companies expanded rapidly, sometimes mistaking quick early growth for sustainable trends.

“But the recent combination of rising interest rates, investor pressure for profitability, and market normalization has forced companies to significantly reduce their workforces to align with actual business needs.”

Damien Filiatrault, founder and CEO of Scalable Path, a software staffing agency with a network of over 39,000 developers in 177 countries, believes many contributing elements came together to bring about the 2024 wave of layoffs.

“Accelerated hiring across the startups and the big techs, post-pandemic, resulted in a sizeable workforce that became unsustainable as global economic growth slowed.

“Furthermore, increasing inflation and lower investor optimism worsened the situation.

“One of the biggest factors was the faster-than-anticipated use and adoption of AI-based solutions, which made it possible to automate processes and make some functions unnecessary.”

Matthew Franzyshen, business development manager at Ascendant Technologies Inc., also believes the technology layoffs are being used to correct the excessive hiring that happened to meet the demand for tech-related tools during the pandemic.

“The pandemic saw a significant surge in things like online spending and remote working, all of which meant that tech companies needed more people to satisfy demand. Now that life is shifting back to pre-pandemic ways, things like remote work are slowly returning to traditional models.

“People are moving from remote to hybrid, and eventually to in-office roles only. As a result, the supply of workers needed to meet the demand for remote work is no longer necessary, leading to layoffs.”

AI Promises vs. Layoff Realities

Matt Collingwood, managing director of VIQU IT Recruitment, suggests the reason behind tech layoffs in 2024 is that there was so much hesitancy in the market.

“Globally, in 2024, countries across the world were heading to the polls, and many organizations didn’t know how their economies and workforces would change after these elections.

“This led to lower confidence and lower investment in their tech teams, ultimately making people redundant because they could not guarantee that they would work.”

Many companies hired aggressively during the pandemic to meet the demand for remote work and e-commerce solutions. As market conditions stabilize, these companies grapple with revenue declines and overstaffing.

Konrad Martin, CEO of TechAdvisors, shared with Techopedia some tech layoff trends they have seen from conversations with their clients.

“For instance, Intel’s 15,000 layoffs were tied to shrinking profits and a need to cut costs. Companies like Dell have also streamlined to adjust to lower margins and slower growth. These tough decisions reflect a recalibration of priorities after pandemic-driven expansion.”

Oliver Shaw, CEO of Orgvue, suggested that while companies may not come right out and say it, tech companies in 2024 were backed into a corner and feel like they’re forced to make a choice: either heavily invest in AI to eventually offset costs in the name of efficiency (with layoffs as a consequence) — or risk being left behind.

“These layoffs were not necessary, and tech companies will regret this choice down the line. AI cannot replace the soft skills of people.

“Non-tech companies will grab this top-tier talent that has just entered the market, and when the tech companies later realize they need the employees, they’ve let go, but they won’t be there.”

The events highlighted by these industry leaders reveal an interplay of post-pandemic market corrections, economic uncertainties, the AI investment rush, and evolving workplace dynamics.

More Tech Layoffs Coming in 2025?

Key Factors Driving Layoffs in 2025

2025 is already witnessing its first round of layoffs with Booking Holdings, an online travel company anticipating it will need to cut 8-10% of its workforce.

Elsewhere, scheduling platform Calendly is laying off 13% of its workforce.

So, what roles can we expect to be in demand in 2025, and how can workers adapt to ensure they continue to thrive in the workplace?

Our conversations with industry experts repeatedly involved the convergence of AI, cybersecurity, and data science.

Rongala of Edstellar told Techopedia that product managers in AI and cybersecurity who mix technical and business acumen will be in demand.

“Tech for green energy will increase too. For example, the demand for software engineering for electric cars and AI-driven climate modeling is already exorbitant.”

Konrad Martin, CEO of TechAdvisors, predicts that tech jobs focusing on AI, cybersecurity, and cloud infrastructure will likely be in demand.

“Businesses are investing more in protecting data and optimizing operations with AI. We’ve noticed that companies are increasingly asking about cybersecurity training and compliance, areas critical to business survival.

“Support positions that don’t align with strategic business goals may see reductions. Predicting when tech sector layoffs will stop is challenging.

Collingwood of VIQU IT Recruitment suggested that three main areas of tech are rising in demand and will continue to do so in 2025: cybersecurity, data, and AI.

“Cyber threats are becoming much more sophisticated and dangerous for organizations. AI is transforming the tech landscape, and data jobs will be needed to support this growth.”

Filiatrault of Scalable Path expects that demand for AI will inevitably soar as organizations continue to build proprietary AI tools.

“There will also be an upsurge in demand for data scientists and people in data engineering roles as companies race to gain insights for their data-driven decisions through data analytics.

“There will be many openings in areas such as blockchain development, AR/VR development, and other technological innovations geared towards Web3.”

Nag of QueryPal points to AI, cybersecurity, and cloud architecture as emerging as key drivers of employment.

He also predicts that AI engineers and machine learning specialists will be essential as companies integrate artificial intelligence across their operations.

“Data scientists and cloud architects continue to be vital for organizations prioritizing data-driven decision-making and scalable infrastructure. The overlaps (such as security around AI models) are extremely in demand and likely to remain so for the next few years.”

Julia Yurchak, Talent Sourcing & Acquisition Management Specialist, revealed that the hot skill sets in high demand will be AI trainers and data labelers.

“They’re the key to the accuracy and efficiency of AI machines. They have strong data annotation backgrounds and a deep knowledge of certain AI uses, such as natural language processing and computer vision.”

The future isn’t what it used to be, which could be another reason why the old guard is learning that the strategies that helped them achieve success are no longer working.

An increasing focus on green technology and Web3 platforms is creating new specialized roles. Some traditional tech roles will continue to fade, but the sector isn’t contracting – it’s transforming.

We expect tech workers who combine technical expertise with adaptability and cross-domain knowledge will find themselves in high demand in 2025.

Vulnerable Tech Roles in 2025

  • Routine and Entry-Level Roles (e.g., junior developers, basic IT support, QA testers)
  • Legacy System Maintenance (e.g., static software upkeep)
  • Traditional Project Management (e.g., classic PM roles)
  • Line Support Roles (e.g., helpdesk, repetitive IT tasks)
  • Non-Innovative Technical Management (e.g., oversight roles)

Understanding which positions are most vulnerable to displacement in 2025 isn’t just about identifying at-risk jobs. It’s about recognizing how traditional roles are changing and where workers might need to adapt their skills.

We asked industry experts to share their insights on which positions face the greatest challenges in the year ahead.

Nag of QueryPal believes that any role involving routine or easily automated tasks faces the greatest risk. Entry-level software development, basic IT support, and traditional quality assurance positions may be significantly impacted by automation.

“Even technical management roles could be at risk if not directly tied to innovation or revenue generation. Organizations increasingly favor streamlined teams capable of delivering specialized, high-impact results.”

Filiatrault of Scalable Path agrees that positions that require little technological effort, like basic IT support roles, junior QA roles, and simple programming, will be at greatest risk.

“Automation tools, such as no-code platforms and AI-driven testing systems, can be quickly developed to take over routine tasks.

“Similarly, jobs dedicated to static tasks, like maintaining legacy software systems, will diminish as companies replace outdated infrastructure.”

Franzyshen of Ascendant Technologies anticipates that industries in which automation can be easily implemented will be most affected.

“Sectors like manufacturing and retail, where companies are increasingly investing in AI-driven solutions, could face potential layoffs.”

Yurchakof Keller of Executive Search advised that although some positions will likely be eliminated, there are new openings.

“We might lose some traditional positions. Project hierarchies are becoming obsolete as agile approaches and self-managing teams take hold. Firms are giving teams ownership, which could decrease the need for the traditional project manager role.

“This doesn’t necessarily entail eradication, though. Instead, project management skills might be fused with other disciplines and call for a more hybrid set of skills.”

Collingwood of VIQU IT added that the jobs he believes will struggle in 2025 and beyond are those that can be replaced with AI, such as line support roles.

“I predict this will be a more gradual change, but AI poses a greater risk to them.”

Our experts agree that we will continue to see traditional positions transform and merge with other disciplines.

For workers, developing hybrid skill sets that combine technical expertise with adaptable, human-centric capabilities is key to career longevity. The message isn’t of wholesale replacement but of strategic upskilling and professional reinvention.

Key Factors Driving Layoffs in 2025

Although tech layoffs news continued throughout 2024, the number is dropping. We asked our experts if they thought the maturity of AI and demand for new roles would see the number of job losses continue to decline in 2025.

Tech layoffs in 2024

Rongala of Edstellar thinks the outlook for 2025 will depend on old-school software or jobs AI can automate, such as data entry and basic coding, getting further cuts.

“Slow-growth companies might cut tech spend. Suppose, for instance, a retail store chain is replacing its human database management personnel with AI-driven software to save money.

“AI is reshaping roles, but demand for adaptable, creative, and high-skill talent remains constant. Tech layoffs will stabilize as economic conditions improve and businesses refine hiring strategies.”

Nag of QueryPal predicts that the industries facing tech job cuts in 2025 primarily have mature or saturated markets.

Due to declining ad revenues and market saturation, social media and consumer electronics firms are particularly vulnerable.

“AI is playing a dual role in this transformation – while it’s accelerating the automation of routine positions, it’s also generating strong demand for specialists who can implement and optimize these AI systems effectively.”

However, Ger Doyle, Head of Experis U.S., has a more optimistic outlook: “The tech sector’s trajectory toward 2025 reveals a more nuanced story than recent headlines about layoffs might suggest.

“While we’re seeing strategic workforce adjustments across some organizations, this represents a recalibration rather than a contraction.

“What’s emerging is a fundamental reimagining of how our industry cultivates and retains talent — where technical expertise no longer defines success.

“Professionals strategically choose organizations that deliver comprehensive growth pathways and authentic work-life integration.”

Golan of Prompt Security added:

“In 2025, organizations may increasingly redeploy talent into roles requiring uniquely human skills — such as creativity, strategic insight, and problem-solving — while maintaining the human element in the workforce.”

When Will Big Tech Layoffs Stop?

The bigger question most workers will be asking is not whether the job cuts will slow down but if they will finally come to an end in 2025. Although our experts are largely optimistic, they seem to agree that workers are not out of the woods yet.

Yurchak of Keller says we don’t know with much certainty when tech layoffs will end.

“A major issue to consider is the lack of talent in key tech fields such as AI, cybersecurity, and cloud computing.

“As this gap expands, companies might focus more on keeping talented workers than laying off.”

Nag of QueryPal believes that there is light at the end of the tunnel and expects the stabilization of tech layoffs by late 2025 or 2026 as companies achieve a more sustainable balance between workforce size and business requirements.

However, Nag also warns that the technology sector’s inherent volatility means companies must remain adaptable to ongoing market changes and technological advances.

Filiatrault of Scalable Path told Techopedia that towards the end of 2025, or alternatively in 2026, the technology layoffs are anticipated to moderate since the economies will have stabilized after the recession and firms will have fully integrated AI into their operations.

“The hiring patterns will also reflect the need for more technical skills; hence, the inflation and the resulting layoffs will be lessened. Balancing the speed of technological advances and the integration of manpower competence will define the structure of the world workforce.”

Collingwood of VIQU has an optimistic view of the year ahead:

“In my conversations with clients and business leaders, many plan investing and growing their tech teams in 2025. We will still see layoffs in 2025. However, they will be outweighed by the growth in job creation in other areas of tech.”

Future-Proofing Your Career in 2025

The days of working in the same company for 40 years and choosing a watch as a retirement gift are long gone.

Workers accept that continuous learning will play a crucial role in the success of their careers. But what other advice do our experts have for tech workers in 2025?

Doyle of Experis revealed that its Global Talent Barometer has found that IT professionals maintain high confidence levels despite recent market uncertainty and report the strongest work-life balance across all sectors.

“While AI may reduce the need for certain traditional roles, it’s simultaneously creating new opportunities and categories of work, suggesting that the narrative isn’t about broad-scale layoffs, but rather about strategic realignment toward innovation-driven growth.”

“Sustainable success will demand more than just strategic hiring – it will require creating ecosystems where continuous learning fuels innovation and retention.

“Organizations that grasp this evolution and commit to developing adaptable talent will write the next chapter of sector growth.”

Martin of TechAdvisors advises that tech professionals must focus on continuous learning.

“We emphasize training and upskilling because the need for adaptable skills never fades, even during industry upheavals.”

Tobie Morgan Hitchcock, co-founder and CEO of SurrealDB, offers a reassuring reminder that although the rise of AI is dominating all aspects of the tech world, it will not necessarily replace human jobs.

“As the developer role is so people-centric, I don’t foresee a world without human involvement in generating codes.

“While this isn’t the case for all AI use cases, it remains true that companies will have to look at the bigger picture of where AI is becoming the most beneficial and then decide if that means reworking the way some roles look or eliminating them.”

Doyle of Experis adds sustainable success will demand more than just strategic hiring – it will “require creating ecosystems where continuous learning fuels innovation and retention.”

Organizations that grasp this evolution and commit to developing adaptable talent will write the next chapter of tech sector growth.

The Bottom Line

Our conversation with industry experts reveals that AI is not a job killer. It’s a catalyst for change. It’s forcing us to re-evaluate how we work, to embrace new skills, and to prioritize human ingenuity and adaptability.

The future belongs to those who embrace this change, continuously learn, and use AI to unlock new levels of creativity and innovation.

As an eternal optimist, this writer believes technology will empower rather than replace human potential.

FAQs

Why are tech companies laying off employees?

When will tech layoffs stop?

Are tech layoffs over?

Which tech companies are laying off?

Which tech jobs are being laid off?

Why are tech layoffs happening?

Is getting laid off the same as getting fired?

How many people were laid off in 2024?

Will tech layoffs continue in 2025?

Advertisements

Related Reading

Related Terms

Advertisements
Neil C. Hughes
Senior Technology Writer
Neil C. Hughes
Senior Technology Writer

Neil is a freelance tech journalist with 20 years of experience in IT. He’s the host of the popular Tech Talks Daily Podcast, picking up a LinkedIn Top Voice for his influential insights in tech. Apart from Techopedia, his work can be found on INC, TNW, TechHQ, and Cybernews. Neil's favorite things in life range from wandering the tech conference show floors from Arizona to Armenia to enjoying a 5-day digital detox at Glastonbury Festival and supporting Derby County.  He believes technology works best when it brings people together.