Tech’s Great Reset: Over 240,000 Jobs Vanish in 2025 as AI-Driven Layoffs Reshape the Industry

The tech industry's wave of layoffs continued in 2025, with more than 240,000 workers losing their jobs globally, according to data tracked by PRISM. While the year's total is slightly below the highs of the post-pandemic correction, the motivation has fundamentally shifted. This wasn't just about cutting costs; it was a sweeping, industry-wide reallocation of resources toward the generative AI gold rush.

The year began with legacy tech giants like Dell and SAP trimming their workforces, citing persistent economic uncertainty. But by mid-year, the narrative changed. Big Tech firms, including Google and Meta, began shuttering or downsizing entire divisions, not because they were unprofitable, but to free up billions in capital and talent for their burgeoning AI ambitions. Companies internally referred to these moves as "resource realignment" and a drive for "efficiency."

Three core drivers fueled the 2025 layoffs. First, the lingering effects of high-interest rates and slower market growth. Second, intense pressure from investors to demonstrate profitability. But the most powerful catalyst was AI. Companies were engaged in a fierce talent war, laying off staff in legacy roles to fund astronomical salaries for AI specialists. It was less a traditional restructuring and more a strategic reconstitution of their human capital.

This great reset didn't impact all roles equally. The enterprise SaaS, ad-tech, and project management sectors were among the hardest hit. Conversely, demand for AI infrastructure engineers, cybersecurity experts, and AI model researchers skyrocketed, creating a starkly bifurcated job market where specialized AI skills commanded unprecedented premiums.

Heading into 2026, the key question is whether the productivity gains from AI will be enough to offset the human cost and drive a new wave of growth. The tug-of-war between AI-driven job destruction and job creation, it seems, has only just begun.