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Major technology companies are shedding thousands of jobs in a fresh wave of layoffs, signaling a strategic pivot toward artificial intelligence and leaner operations amid economic headwinds. In the past week alone, Meta Platforms Inc., Workday Inc., OpenText Corp., and others have announced cuts affecting over 6,500 workers, part of a broader 2025 trend that has already seen more than 10,800 tech jobs vanish. Behind the numbers: a race to integrate AI, appease investors, and sharpen performance in an industry once defined by rapid growth.
A Week of Workforce Reckoning
Meta kicked off the latest round, notifying some 3,600 employees—5% of its workforce—on Feb. 10 that their roles would end. Chief Executive Mark Zuckerberg called it a move to “raise the bar” on performance, targeting low performers in a blunt internal memo. The cuts, reported by Bloomberg, follow a December reduction of equal size, bringing Meta’s total layoffs since 2022 past 24,000.
Workday, a leader in human-resources software, followed on Feb. 12, axing 1,750 jobs, or 8.5% of its staff. CEO Carl Eschenbach tied the decision to a push into AI, aiming to redirect funds from legacy roles to high-growth bets. OpenText, meanwhile, disclosed plans on Feb. 13 to eliminate 1,200 positions, citing cost efficiencies as investor pressure mounts.
Elsewhere, Alphabet Inc.’s Google unit rolled out a voluntary exit program for its Platforms & Devices team, offering U.S. employees severance to depart, a shift from traditional layoffs. Microsoft Corp., Salesforce Inc., and Amazon.com Inc. also trimmed staff this month—Microsoft targeting underperformers, Salesforce cutting over 1,000 while hiring for AI roles, and Amazon paring its communications and sustainability units as part of a broader plan to shed 14,000 managerial jobs by spring.
Why Now?
The drivers are clear: AI is reshaping tech’s labor landscape. Companies are slashing headcounts to fund automation and machine-learning initiatives, with Workday and Salesforce explicitly linking cuts to AI investment. A World Economic Forum survey projects 41% of firms will shrink workforces due to AI within five years—a future arriving early in 2025.
Economic realities bolster the case. Despite a strong U.S. jobs report showing 353,000 new positions in January, tech firms face demands for profitability. OpenText aims to save millions annually, while Amazon’s cuts align with a goal to trim billions in costs. Performance, too, is under scrutiny: Meta and Microsoft are culling weaker contributors, signaling a meritocratic turn.
Strategic realignment rounds out the picture. Google’s voluntary exits and Salesforce’s dual cut-and-hire approach reflect a shift toward AI and cloud priorities. Nokia Corp.’s leadership handover this week to Justin Hotard, an infrastructure-focused executive, hints at similar moves ahead.
The Fallout
The cuts are rattling tech’s workforce. Employees at Meta voiced shock on social media, with some high performers caught in the crosshairs, eroding trust after years of layoffs. A Washington Post analysis warns of stifled innovation as morale dips—a risk for an industry reliant on creativity.
The job market is splitting: AI-savvy workers find opportunities, while others face obsolescence. Hiring persists in IT and finance, but the Economic Report of the President estimates 10% of U.S. jobs are vulnerable to AI disruption. Competitively, leaner firms may gain an edge—SAP SE and PayPal Holdings Inc., for instance, are channeling savings into AI and digital-commerce platforms.
Culturally, tech’s ethos is shifting. Gone are the cushy perks of the 2010s; in their place, a pragmatic focus on efficiency. Posts on X this week called it a loss of “decorum,” with Meta’s candid rhetoric and Google’s exit offers underscoring the change.
What’s Next?
More layoffs loom. According to a recent business survey, some 45% of U.S. managers expect AI and economic pressures to drive cuts this year. Still, stabilizing venture funding adds urgency for startups and giants alike to streamline. Yet growth persists—data-center expansions by Pulsant and connectivity projects like Bharti Airtel’s subsea cable signal a robust future for those who adopt.
For workers, the message is stark: Upskill or risk irrelevance. For companies, balancing cuts with innovation is the tightrope to watch. Tech’s workforce reckoning is here—and 2025 is its proving ground.