The RationalFX report summarizes the U.S. states with the highest tech layoffs in 2025:
- California: 73,499 jobs (43.08%)
- Washington: 42,221 jobs (24.74%)
- New York: 26,900 jobs (15.8%)
- Texas: 9,816 jobs (6%)
- Massachusetts: 3,477 jobs
Intel leads workforce reductions
Intel contributed the single largest number of layoffs in 2025, according to the RationalFX report.
The semiconductor stalwart, which employed roughly 109,000 people at the end of 2024, announced plans to reduce its headcount to around 75,000 by the end of 2025, representing a workforce reduction of approximately 34,000 roles. Other major U.S. tech companies that experienced large-scale layoffs in 2025, according to the report:
- Amazon: more than 20,000 job cuts
- Microsoft: approximately 19,215 layoffs
- Verizon: 15,000 employees (15% of workforce)
- Tata Consultancy Services: 12,000 jobs
- Accenture: 11,000 employees
- IBM: 9,000 job cuts
- HP: 6,000 roles (10% of workforce)
“Unlike earlier layoff waves driven by over-hiring, many of 2025’s reductions were permanent, with entire roles eliminated as companies rebuilt around AI-first operating models,” Cohen said. “Despite heavy investment in automation, these restructurings have not always delivered immediate efficiency gains, highlighting a growing gap between expectations around AI-driven productivity and the realities of large-scale workforce transformation.”
AI and automation drive job elimination
The RationalFX report found that AI and automation were among the most frequently cited drivers of layoffs in 2025. With some companies retraining staff, others looked to replace roles entirely, particularly in data processing, customer support, HR, and administrative functions, the report states.
In October 28, Amazon confirmed 14,000 job cuts, saying the company was now focusing on AI and adapting to the transformative technology. In 2023, U.K. telecommunications provider BT said it would be cutting 55,000 jobs, with the number representing both hired employees and contractors by 2030. “By the end of March 2025, BT employed around 85,300 people, roughly 6,400 fewer than at the same time in 2024,” according to the RationalFX report.
