The technology industry’s prolonged restructuring shows no signs of slowing in 2025, with recent reports indicating more than 22,000 workers have lost their jobs across the sector this year. According to data from independent tracker Layoffs.fyi, February alone saw a staggering 16,084 cuts—suggesting the pace of workforce reductions may be accelerating rather than stabilizing.
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AI Reshapes Workforce Strategies
What’s notably different in this year’s layoff patterns is how frequently companies are explicitly pointing to artificial intelligence as a driving factor. Paycom, an Oklahoma City-based HR software firm, is reportedly eliminating over 500 positions due to AI and automation improving back-office efficiencies, according to local reports. Similarly, European food delivery giant Delivery Hero confirmed it’s cutting 450 jobs while emphasizing its increasing reliance on automated systems.
Meanwhile, Fiverr’s planned 30% workforce reduction comes with explicit language about becoming an “AI-native” company. The freelance marketplace told The Wall Street Journal the restructuring would reduce management layers and position it for growth with an AI-focused approach. This trend extends to established players too—Google has cut over 100 design roles in its cloud division as the company shifts resources toward AI investments, per CNBC reporting.
Semiconductor Sector Feels Export Pressure
Applied Materials is planning to cut about 4% of its workforce, roughly 1,400 jobs, according to industry analysis. The chip equipment maker is streamlining operations amid tighter U.S. semiconductor export controls that have created significant headwinds for the industry. Intel appears to be facing similar pressures, with reports suggesting nearly 2,400 Oregon positions could be eliminated—almost five times more than initially announced.
The semiconductor industry’s challenges come as companies navigate both geopolitical tensions and shifting demand patterns. Intel’s foundry division alone plans to lay off 15-20% of workers starting in July, representing a significant restructuring of their external manufacturing business.
Enterprise Software Consolidation Continues
Smartsheet, recently taken private in an $8.4 billion acquisition by Blackstone and Vista Equity Partners, has reportedly laid off over 120 employees amid leadership transitions. The enterprise software company had grown to more than 3,300 employees before the buyout.
Salesforce is trimming another 262 jobs at its San Francisco headquarters, according to state filings, just weeks after CEO Marc Benioff touted AI’s potential to reduce customer support roles. The cuts follow a smaller round in Seattle and Bellevue earlier this month, suggesting ongoing optimization across the CRM giant’s operations.
Atlassian provides perhaps the starkest example of the AI transition’s human impact. The Australian software firm cut 150 customer service roles just hours before co-founder Scott Farquhar urged Australia to embrace an “AI revolution” and move beyond “jobs of the past” in a national address.
Startups and Unicorns Face Reality Checks
The startup sector isn’t immune to these pressures. Handshake, the San Francisco-based platform connecting students with employers, laid off around 100 employees in October—about 15% of its U.S. workforce. The cuts affected various roles across its recruiting business vertical as the company navigates what it calls its “refounding in the AI era.”
Gupshup, a conversational AI company preparing for an IPO within two years, has laid off at least 100 employees including junior developers—just months after cutting nearly 200 jobs. Despite raising $60 million in equity and debt in July, the company appears to be streamlining operations ahead of its public market debut.
Even companies with recent acquisitions are restructuring. Meta is laying off around 200 employees at data-labeling startup Adept AI and severing ties with 500 global contractors—just weeks after bringing in the company’s CEO as part of a $14.3 billion deal.
Broader Industry Implications
The scale and scope of these cuts suggest we’re witnessing more than typical business cycle adjustments. According to industry observers, we’re seeing fundamental restructuring as companies reallocate resources from traditional tech roles toward AI-focused positions and automated systems.
What makes the current environment particularly challenging for affected workers is that many companies are cutting roles while simultaneously hiring for AI-specific positions. This creates a skills mismatch that could leave some technical professionals struggling to find new opportunities without retraining.
As one industry analyst noted, we’re likely seeing the beginning of a multi-year transition where companies optimize their workforce for an AI-first operational model. The human impact of this shift—evident in the 22,000+ jobs already eliminated this year—serves as a stark reminder that technological advancement often comes with significant workforce disruption.
