RationalFX Data Shows 245,000 Tech Layoffs in 2025

The global technology sector entered 2026 under the shadow of one of the most disruptive workforce resets in its history. In 2025 alone, nearly 245,000 tech workers worldwide were laid off, as companies accelerated structural overhauls driven by automation and artificial intelligence.

Rather than temporary cost-cutting exercises, these reductions signaled a lasting shift in how technology organizations are built and scaled. U.S.-based firms accounted for about 69.7% of all job cuts, highlighting the concentration of restructuring among the world’s largest technology companies.

The scale and permanence of these layoffs point to a defining moment for the industry, where entire roles are being eliminated as enterprises rebuild around AI-first operating models, reshaping the future of work across global markets.

Where the Layoffs Hit Hardest in 2025

Unlike earlier cycles of downsizing often tied to over-hiring or short-term economic slowdowns, the 2025 layoff wave reflected a deeper structural reset across the technology sector.

Before examining country-level figures, it is important to understand the broader forces behind these workforce reductions. Companies worldwide accelerated transitions toward automation-driven and AI-first workflows, permanently eliminating roles that no longer aligned with these new operating models.

While macroeconomic pressures such as elevated interest rates and geopolitical uncertainty added strain, the dominant catalyst behind the layoffs was the rapid adoption of artificial intelligence and automation technologies.

Against this backdrop, RationalFX’s analysis highlights where job losses were most heavily concentrated globally:

In total, European tech companies eliminated 32,608 jobs, accounting for 13.5% of global layoffs.

The Companies Driving the Largest Workforce Resets

While geography shows where the impact was felt most acutely, the story of 2025’s layoffs is equally shaped by the actions of a handful of global technology giants.

Several of the world’s most influential firms led the deepest workforce reductions, restructuring operations to align with automation and AI-centric strategies. These decisions displaced tens of thousands of employees and set the tone for how large-scale workforce transformation is unfolding across the industry.

The companies with the largest job cuts in 2025 included:

Together, Intel, Amazon, and Microsoft accounted for 72,700 job cuts, more than double the total number of layoffs across all European tech companies combined.

Key Findings from the RationalFX Report

The tech sector has been among the hardest hit since the aftermath of the COVID-19 pandemic, with close to a million jobs lost since 2021, the report states. In 2025, mass layoffs were largely driven by automation, AI-related displacement, and broader cost-reduction strategies.

While automation-exposed roles were the earliest casualties, Microsoft’s earlier round of layoffs affecting 6,000 employees, including a senior AI leader, underscores that no level is immune.

Over the course of 2025, at least 244,851 layoffs were recorded across the global IT sector, with American corporations responsible for 69.69% of those reductions, equivalent to 170,630 positions.

European tech firms eliminated 32,608 jobs, representing around 13.5% of global layoffs. Given that many companies do not publicly disclose workforce reductions, the actual figures are likely significantly higher.

Despite notable layoffs across Europe, job losses at major U.S. technology firms far exceeded regional totals elsewhere. For example, Amazon and Microsoft cut 19,555 and 19,215 roles, respectively, while Intel alone eliminated 33,900 positions. Collectively, these three companies cut nearly 72,700 jobs, more than twice Europe’s total tech layoffs.

In the United States, Intel and Microsoft recorded the highest workforce reductions, while in India, Mumbai-based IT services firm TCS led with 12,000 layoffs. Accenture eliminated nearly 11,000 roles across Europe as part of its shift toward AI agent deployment and increased automation.

AI and Automation as the Primary Drivers

The report estimates that approximately 69,840 layoffs in 2025 were directly linked to AI and automation initiatives.

Amazon explicitly cited AI adoption in internal communications explaining workforce reductions, while Accenture’s restructuring involved training remaining staff in AI agents alongside large-scale role eliminations.

Unlike earlier layoff cycles driven by over-expansion, many of these cuts were permanent, with entire job functions removed as organizations rebuilt around automation-led processes.

Structural Pressures Extend into 2026

Looking ahead, workforce reductions are expected to persist into early 2026, driven by automation, strategic realignment, and continued economic caution. However, AI-focused roles are projected to see stronger hiring demand, signaling a shift in workforce composition rather than an outright contraction.

Alan Cohen, analyst at RationalFX, notes:

“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 weighed 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.

Layoffs are unlikely to end abruptly in 2026. Structural pressures including automation, strategic pivots, and economic caution suggest workforce reductions will persist through at least the first quarter of the year, even as AI-related roles continue to expand.”

Data sourced from RationalFX analysis of WARN notices and independent reports covering January–December 2025.

The full dataset, methodology, and company-level breakdowns are available in the complete report.