2025 Job Cuts Cross 1M – Is This A Tech Industry Reset?

It’s official: this might actually be the worst time to work in tech. Last month, mass layoffs in the tech sector reached the highest amount in more than two decades, with the only comparable period being 2003. Couple this with the fact that total US layoffs have now hit 1M+ this year, and it becomes clear that something big is happening. 

Salesforce is no stranger to a reset – its own job market went through one just last year – and all signs are beginning to point to the fact that the wider tech space may be hurtling down a similar path. But what does that mean for job seekers, tech experts, and those worried they will wake up tomorrow and form part of the growing statistics? 

A Big Year of Cuts

When the end of 2024 rolled around, we might have thought that the worst of the tech layoffs was behind us. After all, by the end of December, just under 153,000 tech jobs had been cut, spanning over 550 companies. 

Cut to now, and we’re approaching that figure fast, with over 110,000 cuts as of early November. Some of the most notable contributing layoffs have come from some of the biggest names in the industry, including:

• Google
• IBM
• Microsoft
• Meta
• Intel
• CrowdStrike
• ServiceNow
• And others

Now, the impact can be felt on a much larger scale. Job cuts in the US have now surpassed 1M, reaching “recession-like levels” according to a report by private firm Challenger, Gray & Christmas. In October alone, 153,000 roles were cut – a 183% increase from September and a 175% increase from a year ago.

John Challenger, Challenger, Gray & Christmas’ CEO, said that these kinds of layoffs signaled that we are now entering a “new territory”. 

“When you see companies making cuts of this size, it does signal a real shift in direction,” he said. 

Is AI the Scapegoat or the Driver?

Ever since the reveal of ChatGPT, tech layoffs have been increasingly attributed to artificial intelligence. In principle, this both makes sense and prompts a rather sick feeling; AI is doing exactly what CIOs and business leaders likely discreetly strive for: automating tasks so well that there becomes no need for a human at all. 

This notion is likely only half true. As I wrote earlier this year, as AI gets smarter, the need for certain workers decreases, making the layoffs and AI connection all that much stronger. After all, a lot of the reasons for these layoffs are centered around “growth” and “efficiency”, with AI positioned at the helm of restructuring efforts dedicated to helping companies reach their goals faster. In other words, a PR-polished way of trimming the proverbial fat plaguing the next generation of AI-accelerated businesses. 

This is not to say that restructuring does not and is not happening. In fact, as Newsweek reported, Salesforce appears to have a solid restructuring plan in place to help employees shift to adjacent roles as their original roles are not as essential due to AI efficiencies. 

The CRM’s internal Career Connect platform, launched in September last year, is now supporting skill identification for employees and guidance for pursuing a different career track, as well as side projects and opportunities in different teams. 

There is also a new training program that has helped customer service representatives become “customer service architects” and technical support engineers become technical architects. 

However, it is also very likely that AI could be used as a scapegoat or buzzword for other, deeper reasons behind recent tech layoffs, including revenue pressures, margins, and a complete shift in business direction. 

As Nick Damoulakis, the CEO of AI software company Orases, put it: “‘AI is replacing jobs’ sounds futuristic and bold… while ‘we’re not hitting our numbers’ sounds fragile.”

Restructuring vs. Reset

So, is this just one big restructuring exercise, or are we heading towards something bigger, like a tech-wide reset? 

As Seattle Times writer Paul Roberts wrote: “Big Tech, ruthless disrupter of the traditional economy, now seems to be disrupting… itself.” 

The tech hiring freeze is still being felt, with hiring numbers on a continual decline in some areas. Increasingly larger allocations of budgets are being ascribed to AI. This could very well indicate that the tech market is going through a very particular reset – one that is changing the way teams and companies look and operate for the foreseeable future.

“The major driver [behind recent tech layoffs] has really been a combination of economic pressure and a recalibration in the tech sector after rapid pandemic-era growth,” said Lewis Maleh, the CEO of Talent Advisory BentleyLewis. “Factors like the need to demonstrate profitability, rather than just growth, have led firms to cut roles, particularly in redundant or non-core areas. Global hiring is tougher than ever, and competition for roles in tech has intensified.”

“AI is certainly accelerating change, but it’s not the only explanation for layoffs,” he told Salesforce Ben. “Many are using AI as a narrative to justify restructuring, but economic conditions, cost pressures, and business strategy have just as much impact.”

This is something that Janmejoya Mohapatra, an operations-focused COO, agrees is influencing recent trends.

“AI is a catalyst, yet many layoffs stem from cost-cutting, managerial inefficiencies, and short-term shareholder pressures,” he told Salesforce Ben. 

When asked whether or not he thought that we would see more layoffs, the answer was an unfortunate yes. 

“As AI tools mature and economic uncertainty persists, companies may continue trimming roles,” he said. “However, ethical leadership and inclusive retraining could shift this trend toward transformation rather than termination. Let’s watch patiently.”

Is There Another Side to This?

Although you’ll see and hear a lot of people sharing the same sentiments as Paul, Lewis, and Janmejoya, there are other leaders in the space convinced that we might not be looking at the picture from the right angle. 

“There are no ‘tech layoffs’ – it’s just media hype,” said Mat Roche, the Founder of recruitment agency AI Republic, and one of the experts on the other side of the layoffs theory. 

“Layoffs that have occurred are all in the big tech firms, e.g, Salesforce and Amazon, but they are all still hiring loads of tech engineers. The redundancies in the press are more about changing the shape of the business, where they are shaving off parts here and adding parts there.”

“Most enterprise companies are still growing their IT/tech workforces. [Tech layoffs] aren’t happening, but we should expect businesses to continue the trend of shaving off headcount in certain areas and growing headcount in other areas. They will still be as big, if not bigger. Salesforce is a good example, but they’re still hiring, so the total headcount isn’t really going down.”

According to layoffs.fyi, Salesforce has laid off over 5,000 employees this year. The CRM giant does not openly disclose gross hiring numbers, but in January, Salesforce reported a total of 76,453 employees. Through late 2025, multiple reports still describe “~76,000” employees, indicating that the workforce may remain roughly unchanged. Additionally, at the time of writing, Salesforce is currently hiring for nearly 1,000 positions. 

As Salesforce has not provided updated figures on its employee numbers, we likely won’t have a clear picture of the state of the company until the end of the year. However, it almost certainly leaves that pertinent question in the air: are the layoffs we’re witnessing really just restructuring?

What Does the Future Look Like?

Whether we’re witnessing a restructuring effort or the beginning of a tech-wide AI reset, it still raises questions for the future. Continued layoffs in some capacity are likely to be expected, but how are professionals able to future-proof themselves, if at all? 

Mat, who holds arguably a more positive view than most, insists that moving with AI rather than against it is the way forward. 

“Learn how AI will transform their role and embrace it,” he explained. “If there is genuine concern that you work in a domain that AI could replace, such as customer services, then what transferable skills do you have to pivot into other sectors that will be growing?”

Janmejoya is in agreement, emphasizing that the right roles will be out there. 

“Stay curious, build cross-functional skills, and embrace AI as a collaborator – not a competitor,” he said. “Focus on adaptability, communication, and problem-solving. Seek roles that value human judgment, empathy, and strategic thinking alongside technical expertise.”

Final Thoughts 

Reset or restructuring, layoffs or no layoffs – this is evidently a topic dividing and concerning the tech space. We are continuously told that AI is the future, push forward or get left behind, but the ruthless nature of this effort may already be playing out. 

However, you are not powerless as a tech professional. There is still time for you to advance in AI or AI-adjacent skills, but do not wait too long. Once it’s ready, that train will wait for no one.