New York, June 28: 2025 has become the year of layoffs in the United States. Many American companies have laid off employees due to various reasons, significantly reducing their workforces. Last year, companies from multiple industries laid off employees amid the rise of artificial intelligence (AI), global economic downturn, and international rivalry between the companies. The tech industry has been hit hard by the rounds of layoffs this year, among other sectors.
According to Layoffs.Fyi, this year, 63,823 tech employees lost their jobs at 150 companies globally. As per a report published by Financial Express, about 7 lakh employees lost their jobs in 2025. It mentioned that the layoffs in the USA rose 80% compared to the last year. The layoffs affected 696,309 employees from various companies this year, higher than 3,85,859. Panasonic Layoffs Coming? Japanese Electronics Major Likely To Lay Off Employees Amid Exit Plans in Washing Machines, Refrigerators Segments in India.
The report mentioned that the layoffs were announced in the first five months, which led to employees leaving their jobs. The report cited data released by Challenger, Gray & Christmas, a coaching company located in the United States. In May 2025, the employers in the US announced job cuts of 93,816 employees, which was 12% down from 1,05,441 in April.
Challenger, Gray & Christmas Senior VP Andrew Challenger said that the reasons behind the US layoffs were tariffs, funding cuts, and general economic gloom. The FE report mentioned that due to the extreme strain these circumstances place on their workforces, businesses were cutting back on expenditure, pausing recruiting, and issuing layoff letters.
By 2025, many teach leaders have laid off employees from various divisions, citing performance, artificial intelligence adoption, business restructuring and global competition. Companies like Amazon, Microsoft, Google, Intel, Meta and others have already cut significant workforce in 2025 and are reportedly planning to lay off more by the end of this year. Tech Layoffs 2025: 51,028 Employees Laid Off by 112 Companies So Far This Year Due to Various Reasons, 23,486 Laid Off in April Alone.
The Financial Express said that AI was a big disruption in tech employment. It said that the companies were cutting jobs to make way for AI expertise and investment. Amid this, the Trump Administration laid off 171,843 employees working at federal departments and DOGE (Department of Government Efficiency) cut 61,296 roles.