In a sweeping transformation of the global tech landscape, Google, Microsoft, and IBM have collectively laid off tens of thousands of employees in 2025, citing the need to restructure operations and accelerate their AI integration strategies.
Microsoft: AI Overhaul and Workforce Reduction
Microsoft has led the layoff wave, cutting over 15,000 jobs this year alone. The most recent round in July 2025 saw 9,000 employees let go, following earlier cuts in May. The layoffs affected teams across Xbox, sales, and cloud services, as the company reallocates resources toward its $80 billion AI infrastructure investment. CEO Satya Nadella revealed that AI now writes 20–30% of Microsoft’s code, prompting a shift in workforce priorities2.
IBM: HR Automation and Role Realignment
IBM has reportedly laid off around 8,000 employees, primarily from its Human Resources department, as AI tools take over routine administrative tasks. CEO Arvind Krishna emphasized that while jobs are being automated, IBM is simultaneously hiring in engineering, sales, and marketing, reflecting a pivot toward roles requiring creativity and strategic thinking3.
Google: Streamlining Product Teams
Google has trimmed hundreds of roles across its Android, Pixel, Chrome, and Cloud divisions. The layoffs follow a voluntary exit program and a merger of its Platforms and Devices units. The company aims to streamline operations and boost AI-driven product development, aligning with its long-term innovation roadmap4.
Industry-Wide Impact
According to Layoffs.fyi, over 100,000 tech jobs have been cut globally in 2025, with AI cited as a key driver. Companies are flattening management layers, reducing administrative roles, and investing heavily in AI talent and tools. While the layoffs have sparked concern, experts argue that the shift is less about replacing humans and more about restructuring for future growth