Major U.S. Tech Companies Announce Layoffs Amid Economic Shifts

Several big technology firms in the U.S., including Amazon and Meta, have announced job cuts, with indications of more layoffs in 2025 as the job market faces uncertainty.

Increase in Job Cuts Despite Economic Growth

According to Challenger, Gray & Christmas, Inc., a business consulting firm, 49,795 job cuts were recorded in January, a 28% rise from December but 40% lower than January 2024. Interestingly, despite layoffs, the U.S. economy added 353,000 new jobs in January, double what experts had predicted.

Why Are Layoffs Happening?

Even though the economy is growing, major tech firms like Google, Microsoft, Amazon, Discord, Salesforce, and eBay are cutting jobs. Experts say companies that expanded rapidly during the pandemic’s tech boom are now downsizing due to falling stock values and pressure to increase profits.

The World Economic Forum predicts that 41% of global companies expect to reduce their workforce in the next five years due to advancements in artificial intelligence (AI). AI automation is replacing certain roles, especially in tech and customer-focused industries.

Companies Reducing Workforce

• Amazon has cut jobs in its communications team as part of cost-cutting efforts.
• Workday is laying off 1,750 employees (8.5% of its workforce) due to rising AI adoption.
• Walmart is closing its Charlotte, North Carolina office, shifting operations to California and Arkansas.
• Google introduced a voluntary exit program for employees in its Platforms & Devices division (responsible for Android, Pixel, Chrome, and Nest).
• Meta (Facebook’s parent company) plans to cut 3,600 jobs in 2025, removing low-performing employees.
• Salesforce is eliminating 1,000+ positions but is also hiring in AI-related fields.
• The Washington Post is reducing staff by 4% (around 100 employees) due to financial losses.
• Stripe is laying off 300 workers in product, engineering, and operations, while still planning to expand to 10,000 employees by year-end.

Future Outlook

Layoffs are mostly affecting middle management and non-technical roles, with many employees transitioning back to coding or technical positions. As companies cut costs and invest in AI, job markets in tech and corporate sectors may continue to shift.