Mass Layoffs in 2025 Driven by AI and Restructuring

Mass layoffs continue to affect global sectors in 2025, particularly in technology, finance, retail, and energy, with major companies implementing significant job cuts. These reductions are largely the result of cost-saving measures, organisational restructuring, and the increasing influence of artificial intelligence on traditional business models.

Impact of AI on Job Cuts

The World Economic Forum reports that 41% of organisations globally anticipate workforce reductions within the next five years as a result of AI. While there is growth expected in roles related to big data, fintech, and machine learning, many traditional positions are either being eliminated or reassigned to adapt to this technological shift.

Notable Layoffs by Major Companies

BlackRock, the world’s leading asset manager, is reducing its workforce by approximately 200 positions to streamline its resources. Additionally, Block, the fintech company founded by Jack Dorsey, is letting go of 1,000 employees across its various brands, which include Square, CashApp, and Tidal.

In a similar vein, Ally Financial is laying off around 500 staff members as part of a strategy to “right-size” its operations. Automattic, the parent company of Tumblr and WordPress, is also cutting 16% of its workforce. CEO Matt Mullenweg mentioned that despite the company’s growing revenue, the competitive market and rapid technological evolution necessitate these layoffs.

Aerospace and Retail Job Cuts

The aerospace sector is not immune, as Blue Origin, founded by Jeff Bezos, is downsizing by 10% to concentrate on manufacturing efforts. Boeing, too, is set to eliminate 400 positions within its moon rocket programme due to NASA’s postponed Artemis missions.

Retail companies are facing tough challenges as well. Burberry has announced a reduction of 1,700 roles following a financial loss, while Kohl’s has cut 10% of its corporate workforce amid disappointing sales figures. Starbucks also laid off 1,100 corporate employees recently.

Technology Sector Layoff Trends

The technology sector remains uncertain. Meta is focusing on “low-performers” as part of its ongoing cuts. Intel is planning to reduce 15% of its Foundry workforce, and Microsoft has conducted several rounds of layoffs, with an additional 9,100 cuts scheduled for July. The latest job reductions particularly affect staff in the Xbox division, now under Microsoft Gaming, although specific numbers and departments impacted have not been publicly disclosed.

Similarly, Salesforce and Workday have both eliminated over 1,000 roles, attributing these decisions to a shift towards AI-driven growth.

Other Companies Responding to Market Changes

Other significant companies like Disney, GrubHub, PwC, Porsche, Sonos, and UPS are also implementing layoffs, citing operational efficiency, advances in automation, and changing market dynamics as primary factors in their decisions.

This ongoing trend of layoffs reveals an industry response to the anticipated AI-integrated future and an unstable economic environment.