Human Resource Technology
CrowdStrike, IBM, Google & PwC Navigate Continued Layoffs In 2025 Amid AI-Driven Workforce Shifts
Updated on Thu, May 8, 2025
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The technology sector, often seen as a beacon of innovation and growth, is currently navigating a complex phase, marked by both rapid advancements and significant recalibrations. From agentic AI disrupting the workforce to trade tariffs affecting regional sales, technology businesses need to adapt to the latest shifts.
As we move ahead in 2025, the industry continues to grapple with the repercussions of overhiring, evolving economic conditions, and a strategic pivot towards artificial intelligence (AI) and automation.
While the long-term prospects of technological advancements remain bright, the near future signals some volatility for the workforce, with major tech brands announcing a wave of layoffs. So, how is this uncertainty affecting workers in the short term?
Let’s explore!
The tech industry continues to grapple with workforce reductions in 2025, following a year of significant job cuts. Layoffs.fyi reports that over 150,000 workers were axed across 549 companies in 2024–and the trend persists this year.
Several major players have announced layoffs in recent months, with reasons ranging from restructuring efforts and a focus on AI automation to broader economic concerns.
April saw Expedia laying off approximately 3% of its employees, impacting its product and technology teams. Intel also announced plans for a substantial reduction of over 21,000 employees, about 20% of its workforce. Search engine giant Google also made cuts in its platforms and devices division.
Other tech companies reporting layoffs include Meta, which slashed its Reality Labs division, and General Motors, with job cuts expected to impact its electric vehicle production. Moreover, startups like Turo, GupShup, and Forto have also downsized, citing economic uncertainty and the need for efficiency.
Among the many companies making headlines, CrowdStrike’s recent announcement stands out.
In May, cybersecurity firm CrowdStrike announced a 5% reduction in its global workforce, affecting approximately 500 employees.
The company explicitly stated in its SEC filing that this move is part of a "strategic plan" to enhance operational efficiency as it scales its business, with a keen focus on achieving its ambitious $10 billion annual recurring revenue goal.
CEO and Co-founder George Kurtz, in a statement, cited the "transformational power of AI" as a key driver behind the decision. "AI has always been foundational to how we operate," Kurtz added.
"AI flattens our hiring curve and helps us innovate from idea to product faster. It streamlines go-to-market, improves customer outcomes, and drives efficiencies across both the front and back office. AI is a force multiplier throughout the business,” Kurtz asserted.
This announcement comes after CrowdStrike faced scrutiny for a major software update last year that caused widespread disruptions to Windows systems. The company, while touting AI's benefits, also acknowledged the potential risks in a regulatory filing, noting the possibility of "false" outputs and other errors.
Despite the job cuts, CrowdStrike maintains its commitment to achieving $10 billion in annual revenue. The company reported a revenue of $1.06 billion for its fiscal Q4 2025, with layoffs expected to result in charges ranging from $36 million to $53 million.
In contrast, IBM sees AI as a job creator, not a job cutter.
IBM CEO Arvind Krishna has stated that the company's investment in artificial intelligence has led to an increase in its total employment.
Krishna told The Wall Street Journal that while IBM replaced several hundred human resources staff with AI agents capable of handling tasks such as analyzing spreadsheets and drafting emails, the company subsequently hired more programmers and salespeople.
According to Krishna, the efficiencies gained from AI automation in freeing up resources, enabling IBM to invest and hire in "critical thinking" domains such as software engineering, sales, and marketing.
Krishna also addressed the impact of tariffs, stating that their effect on IBM's bottom line has been "very limited" due to the domestic production of its mainframe and quantum systems. However, he cautioned about a potential decrease in demand, which could affect the company's consulting business.
While most tech giants are following IBM’s path, Google continues to trim its workforce, with recent cuts hitting its global business unit.
Google has reportedly laid off approximately 200 employees within its global business unit, handling the company's sales and partnerships, according to The Information.
The job cuts are part of a broader trend in the tech industry, with companies like Google redirecting investments towards high-growth areas such as data centers and AI. Google stated that the changes aim to improve collaboration and customer service.
This follows previous layoffs at Google, including cuts in its platforms and devices unit, which oversees products like Android, Pixel phones, and the Chrome browser.
In early 2023, Google's parent company, Alphabet, announced a reduction of its global workforce by 6%. Other tech giants, including Meta, Microsoft, Amazon, and Apple, have also implemented layoffs in the past year.
Now, the trend is spreading beyond tech with PwC also cutting jobs as attrition slows.
PwC has announced plans to lay off approximately 1,500 employees in its US operations, impacting both new graduates and staff within its audit and tax divisions.
This decision, affecting roughly 2% of PwC's US workforce, marks the second major wave of job cuts at the firm in under a year.
PwC attributes the layoffs to unusually low employee attrition, which has resulted in overcapacity. The firm acknowledged the difficulty of the decision, emphasizing that it was made after careful evaluation.
The layoffs follow a previous restructuring effort last September that eliminated around 1,800 roles in PwC’s products and technology division. The other Big Four firms, including Deloitte and KPMG, have also recently trimmed their staff, citing similar pressures from low turnover and changing business demands.
The wave of layoffs paints a mixed picture—one where innovation and efficiency collide with job uncertainty. As companies bet big on AI, the long-term impact on employment remains a question.
Do you think AI's rise will ultimately create more jobs than it replaces?
Let us know your thoughts in the comments below!
As we move ahead in 2025, the industry continues to grapple with the repercussions of overhiring, evolving economic conditions, and a strategic pivot towards artificial intelligence (AI) and automation.
While the long-term prospects of technological advancements remain bright, the near future signals some volatility for the workforce, with major tech brands announcing a wave of layoffs. So, how is this uncertainty affecting workers in the short term?
Let’s explore!
Tech Layoff Trend Continues Into 2025
The tech industry continues to grapple with workforce reductions in 2025, following a year of significant job cuts. Layoffs.fyi reports that over 150,000 workers were axed across 549 companies in 2024–and the trend persists this year.
Several major players have announced layoffs in recent months, with reasons ranging from restructuring efforts and a focus on AI automation to broader economic concerns.
April saw Expedia laying off approximately 3% of its employees, impacting its product and technology teams. Intel also announced plans for a substantial reduction of over 21,000 employees, about 20% of its workforce. Search engine giant Google also made cuts in its platforms and devices division.
Other tech companies reporting layoffs include Meta, which slashed its Reality Labs division, and General Motors, with job cuts expected to impact its electric vehicle production. Moreover, startups like Turo, GupShup, and Forto have also downsized, citing economic uncertainty and the need for efficiency.
Among the many companies making headlines, CrowdStrike’s recent announcement stands out.
CrowdStrike Cuts 500 Jobs As AI Takes Center Stage
In May, cybersecurity firm CrowdStrike announced a 5% reduction in its global workforce, affecting approximately 500 employees.
The company explicitly stated in its SEC filing that this move is part of a "strategic plan" to enhance operational efficiency as it scales its business, with a keen focus on achieving its ambitious $10 billion annual recurring revenue goal.
CEO and Co-founder George Kurtz, in a statement, cited the "transformational power of AI" as a key driver behind the decision. "AI has always been foundational to how we operate," Kurtz added.
"AI flattens our hiring curve and helps us innovate from idea to product faster. It streamlines go-to-market, improves customer outcomes, and drives efficiencies across both the front and back office. AI is a force multiplier throughout the business,” Kurtz asserted.
This announcement comes after CrowdStrike faced scrutiny for a major software update last year that caused widespread disruptions to Windows systems. The company, while touting AI's benefits, also acknowledged the potential risks in a regulatory filing, noting the possibility of "false" outputs and other errors.
Despite the job cuts, CrowdStrike maintains its commitment to achieving $10 billion in annual revenue. The company reported a revenue of $1.06 billion for its fiscal Q4 2025, with layoffs expected to result in charges ranging from $36 million to $53 million.
In contrast, IBM sees AI as a job creator, not a job cutter.
IBM CEO Says AI Investments Boost Overall Employment
IBM CEO Arvind Krishna has stated that the company's investment in artificial intelligence has led to an increase in its total employment.
Krishna told The Wall Street Journal that while IBM replaced several hundred human resources staff with AI agents capable of handling tasks such as analyzing spreadsheets and drafting emails, the company subsequently hired more programmers and salespeople.
According to Krishna, the efficiencies gained from AI automation in freeing up resources, enabling IBM to invest and hire in "critical thinking" domains such as software engineering, sales, and marketing.
Krishna also addressed the impact of tariffs, stating that their effect on IBM's bottom line has been "very limited" due to the domestic production of its mainframe and quantum systems. However, he cautioned about a potential decrease in demand, which could affect the company's consulting business.
While most tech giants are following IBM’s path, Google continues to trim its workforce, with recent cuts hitting its global business unit.
Google Cuts Jobs in Global Business Unit
Google has reportedly laid off approximately 200 employees within its global business unit, handling the company's sales and partnerships, according to The Information.
The job cuts are part of a broader trend in the tech industry, with companies like Google redirecting investments towards high-growth areas such as data centers and AI. Google stated that the changes aim to improve collaboration and customer service.
This follows previous layoffs at Google, including cuts in its platforms and devices unit, which oversees products like Android, Pixel phones, and the Chrome browser.
In early 2023, Google's parent company, Alphabet, announced a reduction of its global workforce by 6%. Other tech giants, including Meta, Microsoft, Amazon, and Apple, have also implemented layoffs in the past year.
Now, the trend is spreading beyond tech with PwC also cutting jobs as attrition slows.
PwC Announces Layoffs Amidst Low Attrition
PwC has announced plans to lay off approximately 1,500 employees in its US operations, impacting both new graduates and staff within its audit and tax divisions.
This decision, affecting roughly 2% of PwC's US workforce, marks the second major wave of job cuts at the firm in under a year.
PwC attributes the layoffs to unusually low employee attrition, which has resulted in overcapacity. The firm acknowledged the difficulty of the decision, emphasizing that it was made after careful evaluation.
The layoffs follow a previous restructuring effort last September that eliminated around 1,800 roles in PwC’s products and technology division. The other Big Four firms, including Deloitte and KPMG, have also recently trimmed their staff, citing similar pressures from low turnover and changing business demands.
The wave of layoffs paints a mixed picture—one where innovation and efficiency collide with job uncertainty. As companies bet big on AI, the long-term impact on employment remains a question.
Do you think AI's rise will ultimately create more jobs than it replaces?
Let us know your thoughts in the comments below!
First published on Thu, May 8, 2025
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Nadeem Lutfullah Jul 21, 2025 7:25:36 AM
These, and many other changes in the Hiring and Recruitment Industries are expected. While no one can predict with absolute certainty how quickly or extensively these changes will unfold, the trajectory is undeniable. Read more about it, and how to stay visible and valuable in the new world of hiring in my book ‘Death of the Resume’ published last month. https://mybook.to/DeathOfTheResume