As tech giants including Microsoft, IBM, and Google shed thousands of workers, experts weigh in on the motivations behind the layoffs.
Six months into 2025, the tech industry has seen thousands of layoffs as giants such as Microsoft, Google, Meta, IBM, PwC, and Chegg Inc. make sweeping cuts.
While AI replacing humans is often cited as the culprit, experts say the reality is more complex: these companies are freeing up capital to hire AI instead. It may seem like a neat distinction—and will undoubtedly be cold comfort to those who lost their jobs—but these experts say that these companies need the funds to make big bets on AI. In part, they’re hiring a new workforce. The tech CEOs who are making the layoff decisions are largely offering a darker worldview, confirming that automation is coming for the white-collar workforce.
Microsoft‘s AI ambitions
Microsoft has been at the center of this year’s layoff wave, letting go of nearly 6,000 employees in May, followed
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