2025 saw global tech sector layoffs reach 244 851.
In 2025, 244 851 people were laid off in the global technology industry.
This, as companies like Intel, Amazon and Microsoft, among others, continued to intensify investments in artificial intelligence (AI) technologies.
This is according to data released by RationalFX, which tallied figures based on layoff announcements, WARN notices, and independent layoff reports between 1 January and 31 December 2025.
The US has been highlighted as the country with the largest number of layoffs, with 170 630 (69.7%) people working in 220 companies fired last year.
Asian nation India lands in second place with 19 049 tech layoffs, and Japan sits at third place with 11 608 estimated tech layoffs, based on the report.
In Europe, Ireland, Spain, Switzerland, and Sweden are the countries most affected by tech layoffs, with an estimated 11 500, 7 450, 5 156, and 3 718 tech jobs slashed in 2025, respectively.
RationalFX analyst Alan Cohen describes 2025 as one of the most disruptive years for the global tech workforce on record.
Entire job functions, not just individual roles, were eliminated as companies restructured their operations to focus on efficiency, profitability, and AI-driven productivity, he says.
“Tech sector layoffs in 2025 displaced hundreds of thousands of workers worldwide as companies accelerated structural resets rather than short-term cost corrections. 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.
“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. 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.
Cohen highlights that 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.
“While certain sub-sectors will likely continue to contract, other areas (especially AI-related roles) could see robust hiring.”
The report’s analysis also shows that an estimated 69 840 job cuts were directly linked to the adoption of AI and automation technologies.
Semiconductor manufacturer Intel led with 33 900 job cuts last year
Last year, Amazon warned that AI, specifically generative AI, will trim its workforce as the technology will “change the way our work is done”. In its memo to employees in October, Amazon explained that the reason behind the 14 000 job cuts was AI.
Based on RationalFX’s tally, Amazon reduced its workforce by 19 555 in 2025.
Software giant Microsoft’s job cuts impacted 20 009 employees, during the period under review.
Combined, the three companies have slashed over 72 700 jobs, more than double the total tech layoffs across Europe.
Meanwhile, Ireland-based IT company Accenture also laid off 11 000 employees as the company moved towards greater automation and trained its workforce in the use of AI agents.
In India, Mumbai-based IT services provider TCS led the largest wave of job cuts, letting go of 12 000 staff in 2025.
