Layoffs in the tech industry seem to not be stopping anytime soon. The wave of job cuts is going strong in the sector as several big US tech companies have already announced workforce reductions in 2025.
The latest monthly report from Challenger, Gray & Christmas Inc, a global outplacement and business and executive coaching firm, found that employers in the US cut down more jobs in January, in comparison to December, reported The Business Insider.
However, the layoff figure was the lowest clocked for the month in three years, the study found. The Challenger report showed that 49,795 jobs were slashed in January, about 28 per cent higher than 38,792 job cuts announced in December. However, in January 2024, 82,307 layoffs were clocked in the month, about 40 per cent higher than the figure reported in the same month this year. The major tech companies that have let go of employees in January this year include Microsoft, Amazon, Meta, Google, and Workday, among others.
Major Layoffs In US In 2025 So Far
US retail giant, Walmart, announced that it plans to cut down hundreds of roles and is shutting down its office in North Carolina as the company relocates employees to its main hubs in Arkansas and California. The decision was shared by Chief People Officer, Donna Morris, with the employees based in the US via an internal memo. As part of the restructuring, the company has also asked its office-based employees in Hoboken, New Jersey and some of the smaller offices to shift to its new headquarters in Bentonville, Arkansas, and its office in Sunnyvale, California, reported Reuters.
Workday recently announced that it will hand over pink slips to nearly 1,750 employees. Carl Eschenbach, CEO of the software giant blamed ‘increasing demand’ for artificial intelligence and attributed the layoffs to AI. The executive said that the company will give importance to innovation investments such as AI and platform development, reported The Economic Times.
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Amazon slashed dozens of jobs in its communications unit in January as the company tried to manage costs. Announcing the layoffs, the tech giant said that it has cut down a ‘small number of roles’ in its communications department, as part of the company’s efforts to streamline operations and reduce costs.
Microsoft began terminating the jobs of employees based on their performance, with the staff receiving termination notices citing that they failed to meet the firm’s performance standards. Justifying the decision, the company explained, “At Microsoft we focus on high performance talent… We are always working on helping people learn and grow. When people are not performing, we take the appropriate action,” reported Business Insider.
Meta announced last month that it plans to layoff about 5 per cent of its workforce, targeting the lowest-performing employees in the company. This reduction is expected to impact nearly 3,600 jobs.
While the US economy continues to grow, companies have proceeded with layoffs. The US economy added over 350,000 jobs in January, however, major tech firms continued to cut down their workforce in 2025. These job cuts have been attributed to the increasing pressure companies are facing to increase profits. The job reductions have specifically impacted workers recruited during the period of higher consumer tech spending spurred on by the COVID-19 pandemic.
