The Microsoft and Google latest tech layoffs have sent shockwaves through the global technology industry, as thousands of employees were dismissed in May 2025. Citing economic pressures and a sharp pivot toward artificial intelligence (AI), major tech firms are continuing a wave of restructuring that shows no signs of slowing.
Microsoft and Google Latest Tech Layoffs Signal Deeper Trends
So far in 2025, around 130 technology companies have laid off approximately 61,000 employees. Microsoft alone terminated 6,000 positions on May 13. According to a company statement, the cuts are part of a broader strategy to withstand intense market competition and meet internal restructuring targets.
Google followed suit by laying off 200 employees globally this month, stating that the move aims to improve customer services and streamline organizational functions. Similarly, Amazon confirmed the elimination of 100 jobs in May as part of operational optimization efforts.
Meanwhile, retail giant Walmart is reportedly preparing to lay off 1,500 workers to reduce expenses. These developments underscore the breadth of restructuring across not only tech but also adjacent industries.
AI Drives Workforce Reductions Across Tech Giants
A significant portion of the affected employees at Microsoft were software engineers—nearly 40 percent—based in Washington State. Bloomberg reports that many of them had recently been reassigned to AI-driven projects, only to be replaced as those same AI systems grew capable of handling core responsibilities independently.
This has led to distress among engineers who now question if they inadvertently trained the technologies that rendered their roles redundant. Microsoft CEO Satya Nadella recently remarked that AI now completes nearly one-third of coding tasks within the company, reflecting a wider shift in how businesses deploy human and machine capabilities.
Industry Concerns Rise Amid Widespread Job Cuts
Tech professionals and analysts are increasingly concerned about the future of employment in the sector. With AI adoption accelerating, roles traditionally considered secure—including those in advanced software engineering—are facing disruption.
The Microsoft and Google latest tech layoffs thus represent more than isolated company decisions; they indicate an industry-wide transformation being accelerated by artificial intelligence and economic challenges.
FAQs
Q: Why are Microsoft and Google laying off employees in 2025?
A: Both companies cite restructuring goals, economic challenges, and increased use of AI as primary reasons for workforce reductions.
Q: How many employees have been affected in 2025?
A: Approximately 61,000 tech workers have lost their jobs across 130 companies, including thousands from Microsoft and Google.
Q: Are AI tools responsible for these layoffs?
A: While not the sole reason, many layoffs have followed the adoption of AI tools capable of performing tasks previously done by humans.