Just imagine: You’re working at a promising company. Ideas are flowing, the atmosphere is electric. Then one day, an email lands in your inbox. “Reorganization.” “Efficiency.” “Cost reduction.” Words that, more often than not, predict redundancies.
In 2025, this scene is playing out across the tech world – again and again. According to the latest data, more than 22,000 tech workers have already been laid off this year – and it’s only April.
So what’s really going on in this once seemingly untouchable industry?
An Endless Wave of Redundancies in 2025
The technology sector, long seen as an Eldorado, is going through troubled times. After a year in 2024 marked by over 150,000 job cuts, according to Layoffs.fyi, 2025 shows no sign of abating. February was particularly brutal, with 16,234 jobs eliminated, followed by an explosion in March when over 88,000 people were affected. Why does this storm persist? Between the rise of artificial intelligence, economic pressures and corporate survival strategies, the reasons are multiple and complex.
Giants and startups in turmoil
When we think of redundancies, we often think of big companies. However, in 2025, startups will also suffer. Take Automattic, the company behind WordPress: in April, it announced a 16% cut in its workforce, i.e. around 270 out of 1,744 employees. A surprising decision in a sector where online content creation remains essential. Meanwhile, Canva, the Australian design platform, has cut its team of technical editors, just nine months after pushing its teams to adopt generative AI tools. Ironic, isn’t it?
And that’s not all. Block, headed by Jack Dorsey, cut 931 positions in March, or 8% of its workforce, in a reorganization that, according to the CEO, has nothing to do with AI or financial constraints. Yet these announcements are part of a broader trend: companies are seeking to refocus and become more agile in the face of an uncertain market.
March 2025: A Dark Month for Tech
March 2025 will be remembered as a dark turning point. Swedish battery manufacturer Northvolt laid off 2,800 employees, or 62% of its workforce, just after filing for bankruptcy. A brutal fall for a company that embodied the hopes of the energy transition. Meanwhile, Brightcove, acquired by Bending Spoons for $233 million, saw two-thirds of its American workforce (198 people) leave in one month.
The numbers speak for themselves. Here’s a look at March’s major cuts:
- Siemens: 5,600 jobs cut in its automation and electric vehicle charging divisions.
- Ola Electric: Over 1,000 employees and contractors laid off to cut costs.
- Acxiom: 130 jobs eliminated, i.e. 3.5% of its 3,700-strong workforce.
These decisions, often justified by “efforts to remain competitive”, demonstrate a reality: even well-funded companies are not immune.
AI: Savior or executioner?
Artificial intelligence is at the heart of the debate. On the one hand, it promises to automate repetitive tasks and boost productivity. On the other hand, it threatens jobs. At Canva, for example, technical writers have been sacrificed after the mass adoption of AI tools. But Jack Dorsey at Block insists: his layoffs are not related to this technology. So, where’s the truth?
One thing is certain: automation is reshaping the landscape. Companies are investing in solutions to reduce their dependence on human teams, especially in a tense economic climate. The result? Jobs are disappearing, but new roles are emerging… for those who know how to adapt.
February: The first alarm signals
Before the March explosion, February had already set the tone. HP launched its “Future Now” plan, cutting up to 2,000 jobs to save $300 million. GrubHub, after its takeover by Wonder Group for $650 million, cut 500 jobs, or more than 20% of its workforce. And Autodesk, with 1,350 redundancies (9% of its workforce), sought to rethink its business model.
That month, even giants like Google took action, with a reorganization affecting its People Operations and cloud teams. An offer of voluntary redundancy was made, a sign that cuts are not always brutal, but strategic.
January: The Basics of an Unstable Year
Right from the start of the year, the tone was set. Meta set the ball rolling with a 5% reduction in staff, targeting “low performers” among its 72,000 employees. Amazon followed suit, cutting dozens of positions in its communications department to “act faster”. And Stripe, despite growth plans, laid off 300 people.
Startups were not spared. Cushion, valued at $82.4 million in 2022, closed its doors. Placer.ai reduced its workforce by 18% (approximately 150 employees) to achieve profitability. These cases illustrate a reality: survival takes precedence over expansion.
Why does this crisis persist?
Several factors explain this continuing wave. First, macroeconomic conditions: inflation, rising interest rates, and geopolitical uncertainty are weighing on budgets. Secondly, the race for efficiency: investors demand profitable companies, not just promises of growth. Finally, technological innovation, while essential, requires costly adjustments.
For startups, the situation is even more critical. Those who raised funds at inflated valuations in 2021 are struggling to justify their model today. As a result, they are cutting back on staff to prolong their cash flow.
What impact on innovation?
These redundancies are not without consequences. Fewer staff means potentially fewer ideas, fewer daring projects. Yet some see this as an opportunity. By refocusing, companies could accelerate targeted innovations, particularly in AI or green energies. But at what human cost?
For employees, it’s a different story. Losing one’s job in a rapidly changing sector can be destabilizing. Those who stay often have to take on more responsibility, which increases pressure and the risk of burnout.
Towards an Uncertain Future
So, what does 2025 hold in store? It’s hard to say. If redundancies slow down when venture capital financing picks up or market conditions improve, companies could regain their momentum. But for now, caution prevails. Startups and giants alike are adjusting their sails, ready to sail into ever-changing waters.
One thing is sure: this wave of layoffs reminds us that even the most dynamic sectors are not immune to crises. It remains to be seen who will come out on top in this rapidly changing landscape.
At BluDeskSoft, we believe that technology must be built to stand the test of time. At a time when change is the only constant, we focus on creating robust, scalable and secure software solutions that not only survive crises, but help businesses thrive. Whatever the challenges, we remain your trusted partner for development, maintenance and technical support.