In the United States, the wave of layoffs seen over the past two years is set to persist into 2025, affecting diverse industries including tech, media, finance, manufacturing, and retail. These workforce reductions come amidst a backdrop of economic challenges and rapid technological advancements, particularly in artificial intelligence (AI). According to a report by Business Insider, about 41% of companies globally expect to reduce their workforce over the next five years due to AI. Below is a detailed company-wise breakdown of notable layoffs planned or already underway in 2025.
Microsoft, Amazon, and other major US companies announce layoffs for 2025
Microsoft
Microsoft, under the leadership of Satya Nadella, is implementing layoffs as part of its updated performance management strategy. As per reports, the company plans to terminate underperforming employees across various departments, including its security division.
- Reason for layoffs: Streamlining talent and aligning performance with company goals.
- Impact: Layoffs are expected across multiple departments but are unlikely to significantly reduce Microsoft's overall workforce of 228,000 employees.
- Spokesperson’s statement: "We focus on high-performance talent and take appropriate action when people are not performing."
BlackRock
The global investment management corporation BlackRock plans to cut about 200 employees from its 21,000-strong workforce, as reported.
- Reason for layoffs: Resource realignment to support strategic goals.
- Future plans: Despite the cuts, BlackRock expects to add 2,000 employees in 2025.
Bridgewater Associates
The world’s largest hedge fund, Bridgewater Associates, has laid off approximately 90 employees, accounting for 7% of its workforce, as per reports.
- Reason for layoffs: Efforts to maintain operational efficiency and control costs.
- Context: The layoffs bring the headcount back to 2023 levels.
The Washington Post
The Washington Post has announced layoffs affecting about 4% of its workforce, or fewer than 100 employees.
- Reason for layoffs: Cost-cutting amidst declining digital readership and losses.
- Impact: The cuts are focused on business functions and will not affect the newsroom.
Ally Financial
Ally Financial, a digital financial services company, is laying off around 500 employees from its 11,000-member workforce.
- Reason for layoffs: Strategic realignment to "right-size" the company.
- Support for employees: Severance packages, outplacement support, and internal job application opportunities.
Amazon
As reported, Amazon CEO Andy Jassy announced the elimination of approximately 14,000 managerial roles to improve operational efficiency.
- Reason for layoffs: Restructuring management to increase the ratio of individual contributors to managers by 15%.
- Impact: The cuts are expected to save Amazon up to $3 billion annually. Only corporate roles—around 350,000 out of 1.5 million employees—are affected.
Other major layoffs in 2025
- Boeing: Boeing continues to face layoffs in its manufacturing division as the aerospace giant addresses delays and cost overruns in production.
- Spirit Airlines: The budget airline is restructuring its operations, leading to job cuts that primarily affect administrative and support roles.
The role of AI in workforce reductions
Technological advancements, particularly in AI, are a significant driver of layoffs. Companies like Dropbox, Google, and IBM have already announced job cuts linked to the integration of AI. As the World Economic Forum survey indicates, many organizations anticipate further workforce reductions due to AI-driven automation.
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