Global Tech Industry Sees Massive Layoffs Amid AI Investments in 2025 – RationalFX Report
The rise of artificial intelligence (AI) reshaped the global technology workforce in 2025, triggering 244,851 layoffs as companies like Intel, Amazon, and Microsoft restructured operations and eliminated roles to focus on AI-driven productivity.
Data from RationalFX, based on layoff announcements, WARN notices, and independent reports, shows the U.S. was the hardest-hit, with 170,630 workers affected across 220 companies. India followed with 19,049 layoffs, and Japan with 11,608. In Europe, Ireland, Spain, Switzerland, and Sweden saw 11,500, 7,450, 5,156, and 3,718 tech jobs cut, respectively.
FX analyst Alan Cohen described 2025 as “one of the most disruptive years for the global tech workforce on record”, noting that many entire job functions were permanently removed as companies shifted to AI-first operating models.
“Unlike previous layoff waves driven by over-hiring, 2025’s reductions were largely permanent,” Cohen said. “While automation and AI investments are high, immediate productivity gains have not always materialized”.
RationalFX estimates 69,840 layoffs were directly linked to AI and automation, with Intel leading at 33,900 job cuts. Amazon, which highlighted generative AI as a major factor in changing work processes, reduced its workforce by 19,555, including 14,000 positions announced in October.
Cohen predicts layoffs will continue into 2026 due to structural pressures, automation, and strategic pivots, though AI-related roles may see growth in certain sub-sectors.
