U.S. tech layoffs top 126K in 2025 as AI restructuring accelerates
CALIFORNIA, UNITED STATES — As artificial intelligence (AI) reshapes business priorities, United States-based tech companies have continued cutting jobs through 2025, pushing total layoffs past 126,000 and reinforcing concerns about prolonged workforce instability across the sector.
According to the Crunchbase Tech Layoffs Tracker, around 126,101 workers have been let go from the U.S.-based tech companies this year, reflecting a higher toll than in 2024 and signaling that cost-cutting remains a central strategy as companies recalibrate for AI-driven growth.
The tracker notes that “at least 8,202 U.S. tech sector employees were laid off or scheduled for layoffs” during the week ended December 3 alone.
AI-driven restructuring and M&A deepen U.S. tech job cuts
One of the most prominent recent additions to the tracker is HP. The Palo Alto-based hardware giant plans to cut between 4,000 and 6,000 jobs, according to The Wall Street Journal.
HP CEO Enrique Lores said the restructuring is designed to help the company “keep pace with and invest in artificial intelligence technology,” with the reductions expected to be completed by the end of 2028.
Mergers are also contributing to workforce reductions. Business Insider reported that Omnicom Group has finalized its $9 billion merger with Interpublic Group, a move that will result in approximately 4,000 layoffs, or about 3% of Omnicom’s workforce.
While the merger strengthens the company’s market position, the report said “a majority of the cuts are anticipated to be completed this month.”
Not all job losses stem from restructuring. In Minneapolis, Inbound Health, a provider of hospital-at-home and skilled nursing-at-home programs, shut down entirely. The company said the closure followed “recent regulatory uncertainty,” which made it impossible to secure additional funding.
2025 tech layoffs surpass 2024 but trail 2023 peak
Crunchbase News data shows that 2025 layoffs have already surpassed the 95,667 tech jobs lost in 2024, though they remain below the peak of more than 191,000 layoffs recorded in 2023. Companies with the largest workforce reductions this year include Intel, Microsoft, Verizon, and Amazon.
As U.S. tech firms streamline operations and automate roles, the ripple effects are being felt globally.
For the outsourcing industry, these layoffs may translate into both opportunity and pressure. Companies looking to cut costs while maintaining output may increasingly turn to offshore and nearshore providers for IT support, customer service, and AI training tasks.
At the same time, outsourcing firms will need to adapt quickly, investing in higher-value skills to align with a tech sector that is leaning heavily into automation rather than headcount growth.
