Tech Giants Lay Off Thousands in 2024 to Focus on AI in 2025

• Just under 150,000 staff have reportedly been laid off from the technology industry throughout 2024.
• The majority of layoffs over the past 12 months have been aligned with Big Tech’s renewed focus on AI.
• As we enter 2025, major tech players have positioned themselves to go all in with AI acceleration.

The technology industry has suffered through thousands of layoffs throughout 2024. According to layoffs.fyi, nearly 150,000 staff members were let go  from over 520 tech companies.

Big Tech’s layoffs mark the beginning of a renewed focus on AI-driven strategies for more efficient cost-cutting.

Major tech firms, such as Google and Meta, have already begun realigning their workforces to focus on AI projects, signaling a hiring trend that will likely extend into 2025.

Biggest 2024 Tech Layoffs

Intel

Intel announced  layoffs of over 15,000 employees throughout 2024 after announcing a $10-billion cost cut by 2025.

The layoffs accounted for over 15% of the company’s overall workforce of around 125,000 employees, which could make the total number of layoffs closer to 19,000.

Intel also announced it would restructure its business to “stop non-essential work” and reduce capital expenditures by over 20% throughout 2024.

Tesla

Tesla made two rounds of job cuts in 2024, which resulted in over 14,000 employees losing their jobs.

Elon Musk, CEO of the electric vehicle manufacturer, told  Tesla executives to be “absolutely hardcore” with the cuts, adding that they should not keep anyone who did not “obviously pass the excellent, necessary and trustworthy test.”

The move marked a cut of 10% of Tesla’s global workforce.

Dell

Dell also suffered significant layoffs in 2024, deploying its largest employee reduction in two years, Bloomberg reported .

Approximately 6,000 employees were laid off as the company continued to experience a decrease in user demand and a revenue slowdown.

Alphabet

In June, it was reported that Alphabet would be laying off employees from several teams in Google’s cloud unit.

CNBC reported  at the time, citing people familiar with the matter, that at least 100 positions were cut.

The move followed the firing of over 1,000 employees  in January, targeting workers in Google’s hardware, voice assistant and engineering teams.

Meta

A year on from CEO Mark Zuckerberg claiming 2023 was going to be Meta’s “year of efficiency,” the tech giant started a fresh round of layoffs in October.

According to reports, Meta laid off a small number of cuts across its WhatsApp, Instagram and Reality Labs departments.

The cuts appeared to be in line with the reorganization of specific teams, the Verge reported , citing people familiar with the matter.

Microsoft

Microsoft cut  around 1,900 jobs across its gaming division, marking an 8% decrease in the sector in an attempt to make a better cost structure for the division.

The tech giant also laid off 650 staff members from corporate and support roles in September.

AI-powered Tech Layoffs Plagued 2024

AI played a complex role in the significant layoffs that have swept through the technology industry in 2024.

While economic pressures and strategic shifts were overarching factors in the layoffs, Big Tech’s push to utilize AI reshaped how these companies approached their workforce needs.

As businesses raced to integrate AI into their products and services, they also reallocated resources to AI to reduce workforce costs. In many cases, layoffs targeted middle management and roles that AI systems could replace or augment.

“AI in 2024 has already led to the automation of administrative tasks, which, in turn, is leading to a reduction in entry-level roles,” Hugo Farinha, co-founder of AI-led QA testing provider Virtuoso QA, told CCN.

“Over the long term, this will shift the focus towards more strategic, analytical, and customer-facing positions as AI takes over routine tasks,” he added.

2025’s Focus on AI Acceleration

By 2030, The McKinsey Global Institute estimates  that tasks accounting for up to 30% of the hours now worked across the U.S. could be automated, displacing up to 12 million workers.

As we enter the new year and beyond, it is clear that many Big Tech companies are not only losing jobs to AI but also using the technology to shape their future workforce.

Oliver Shaw, CEO of U.K.-based planning software platform Orgvue, said that the layoffs point towards a broader trend of companies continuing their path towards AI development.

“AI is automating workloads and enhancing workflows, leading the charge in reshaping roles across sectors,” Shaw said. “But while it fuels innovation, automation brings reduced demand for certain skillsets, meaning workforces need to be restructured.”

In October 2024, Google CEO Sundar Pichai announced  a series of structural changes to the tech giant to accelerate the company’s AI standing.

The search engine giant said it would combine its Gemini and Google DeepMind teams to boost the efficiency of AI product development. Google also blended its Assistant teams with its Platforms and Devices division, putting a greater emphasis on creating smart AI.

Meanwhile, PwC launched a restructuring plan that would blend both its AI division and its standalone technology unit.

According to a Financial Times report , the move will create a “digital delivery unit” that will focus on advancing AI, cloud, and data innovations. The restructuring will impact approximately 2,700 staff, the report stated.

Tech companies, while shedding roles in some areas, are likely to expand hiring in AI-related fields as they further accelerate and utilize the technology.

2025 Brings More Layoffs

The first weeks of January have already seen announcements of layoffs and reductions, following on from two years of continuous cuts across the technology industry.

Meta

Meta has seen the most significant round of layoffs so far in 2025, announcing  it will cut 5% of its staff and target “low performers” as the company prepares for “an intense year.”

Meta currently has over 72,000 employees, according to its most recent quarterly report . The tech giant said affected employees will be notified by Feb. 10.

The layoffs mark Meta’s largest layoffs since it removed almost a quarter of its workforce, approximately 21,000 jobs, in 2022 and 2023.

Blackrock

On Jan. 8, it was reported BlackRock was planning to lay off around 1% of its 21,000 workforce.

According to Bloomberg , the reductions will affect around 200 people.

BlackRock’s chief operating officer, Rob Goldstein, said the cuts would help realign the firm’s resources.

Microsoft

Microsoft is also planning an unspecified number of job cuts in 2025 after taking a look at underperforming employees, Business Insider reported , citing two people familiar with the matter.

A Microsoft spokesperson also confirmed cuts to the publication.

“At Microsoft we focus on high performance talent,” the spokesperson said. “We are always working on helping people learn and grow. When people are not performing, we take the appropriate action.”