Tech Layoffs Surge in 2025, Yet Companies Struggle To Find Skilled Workers

• The technology industry has cut thousands of workers so far in 2025 despite needing an increased number of skilled workers.
• Emerging technologies like AI and cybersecurity face major labor shortages across global industries.
• However, overall global hiring intentions are reportedly remaining steady.

In 2025, the tech industry is experiencing a tough dilemma: widespread layoffs have been cutting thousands of workers from its workforce while demand is rapidly growing for specialized skills.

Major corporations such as Microsoft, Meta, and Amazon have laid off thousands of employees, citing economic pressures and the rapid integration of AI technologies as primary catalysts for workforce reductions.

However, as AI and other emerging technologies become a key component of global tech companies, the shortage of professionals proficient enough is becoming evident.

Tech Layoffs Surge in 2025

At the time of reporting, 22,692 employees have been laid off across 81 tech companies in 2025, according to Layoffs.fyi

Beyond tech, U.S.-based employers announced 172,017 job cuts in February, marking the highest total for the month since 2009, when 186,350 cuts were recorded, according to the Challenger, Gray & Christmas report , released on Thursday, March 6.

The layoffs mark the highest monthly total since July 2020 when 262,649 cuts were announced, the report stated.

“Private companies announced plans to shed thousands of jobs last month, particularly in retail and technology,” said Andrew Challenger, Challenger, Gray & Christmas’ Senior Vice President.

“With the impact of the Department of Government Efficiency (DOGE) actions, as well as canceled Government contracts, fear of trade wars, and bankruptcies, job cuts soared in February,” he added.

Companies Need Skilled Workers

As companies continue to shed workers, a growing talent shortage in emerging technologies is threatening to cause significant labor gaps in companies.

Nearly one in four U.S. tech jobs posted so far this year are seeking employees with AI skills, the Wall Street Journal reported .

A November 2024 study from HR consulting firm Randstad found that while 75% of companies were adopting AI, only 35% of talent had received AI training over the past year.

As hundreds of companies shed thousands of workers in favor of AI processes, the demand for AI skills is growing proportionally.

Hugo Farinha, co-founder of AI testing company Virtuoso QA, told CCN that to drive job creation growth, organizations need to build a model that layers over the top of AI.

“The technology is still a long way from becoming ‘an entity’ that can lead, implement and operate itself to a purposeful end but it will increasingly power applications overlaid by strategic, human-led frameworks,” Farinha said.

“Powered by it rather than replaced by it,” Farinha added.

In addition to tech firms, companies in the finance and service industries, such as banks and recruitment companies, are looking for skilled workers to handle internal AI algorithms.

Cybersecurity Skills Gap

Cybersecurity is another branch of technology that has been hit by a skills gap.

According to the 2024 ISC2 Cybersecurity Workforce Study , 4.8 million more cybersecurity professionals are needed to properly secure organizations.

As more organizations adopt cloud technologies, AI, and other advanced systems, the complexity of securing these digital infrastructures grows exponentially.

With cybercrime costs expected to exceed $10.5 trillion USD annually by the end of 2025, the need for security talent is more prevalent than ever.

Hiring Remains Steady

Despite growing skill gaps, global hiring intentions are holding steady into the second quarter of 2025.

According to the ManpowerGroup Employment Outlook Survey the majority of employers (42%) expect to maintain current staffing levels, 40% anticipate an increase in hiring, while just 18% anticipate a decrease or are unsure.

Jonas Prising, ManpowerGroup CEO, said the hiring outlook holding steady for three consecutive quarters was the “longest period of stability we have seen since before the pandemic.”

“Despite continued economic and political uncertainty, employers are holding onto the skilled workers they have and hiring cautiously for new talent, particularly those with in-demand skills that will enable their business to transform,” he added.