Intel (INTC, Financial) and Microsoft (MSFT, Financial) drove the bulk of tech-sector cuts in 2025 as industry-wide layoffs decelerated for the second straight year.
Through May, 137 tech firms have eliminated 62,114 positions—on pace for 145,080 total by year-end, down from 152,922 in 2024 and far below 264,220 in 2023, per Layoffs.fyi. Intel's April announcement to trim 20% of its workforce under new CEO Lip-Bu Tan accounted for roughly 22,000 cuts—over one-third of the year's total—aimed at flattening management layers and rebuilding an engineering-centric culture. In mid-May, Microsoft slashed about 3% of its global head count, or roughly 6,000 roles, as it restructures to stay agile.
Other notable reductions include Meta Platforms' (META, Financial) February plan to eliminate 3,600 low-performer roles (about 5% of its staff), Workday's 8.5% cut (1,750 jobs) to sharpen operational efficiency, Salesforce's 1,000 layoffs alongside new AI hires, and Autodesk's 9% reduction (1,350 positions) to pivot its go-to-market model. HP (HPQ, Financial) and Hewlett Packard Enterprise (HPE, Financial) also shed up to 2,000 and 2,500 roles respectively in ongoing restructuring efforts.
Investors should care because slower-cut momentum signals that tech firms may have largely addressed overstaffing, potentially paving the way for stabilization in operating margins and a renewed focus on strategic hiring.
With Q3 earnings on the horizon, markets will watch whether remaining headcount adjustments shift from belt-tightening to targeted expansion in AI and cloud divisions.
