Meta and Microsoft Announce Job Cuts, Impacting Thousands in 2025
Meta to lay off 5% of its workforce, affecting 3,600 employees, while Microsoft announces additional job cuts in 2025. Read more about the tech layoffs.
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The new year has brought unexpected developments for the global tech industry, with major layoffs announced by two of the world's leading technology firms, Meta and Microsoft. Within the first two weeks of 2025, both companies have disclosed plans to reduce their workforce, citing performance-based evaluations and organizational restructuring.
Meta, the parent company of Facebook, has revealed plans to terminate the employment of approximately 5 per cent of its workforce. According to internal communications obtained by Bloomberg, CEO Mark Zuckerberg has directed senior executives to take immediate action against employees deemed underperforming. Meta currently employs over 72,000 individuals, which means around 3,600 workers are likely to be affected.
The announcement follows a challenging period for the tech sector, which had been anticipating a recovery after prior years of economic uncertainty. Meta's decision highlights ongoing concerns about efficiency and profitability within the industry.
Microsoft has also confirmed workforce reductions for the new year, marking another significant development in the tech sector. Reports indicate that the company is cutting 1 per cent of its global workforce, targeting employees across various departments based on performance metrics.
This follows a series of layoffs in previous years, including 10,000 employees in 2023 and 2,000 workers in its gaming division in 2024. Microsoft has stated that the current layoffs are part of a broader effort to streamline operations and prioritize high-performing teams.
The announcements by Meta and Microsoft have reignited concerns among IT and tech professionals, particularly in regions heavily reliant on the sector for employment. However, industry analysts suggest that the impact of these layoffs may vary by region.
In India, for instance, the effects might be mitigated by positive developments in the local IT sector. Companies such as Infosys have indicated plans to increase campus recruitment and implement wage hikes.
