When tech layoffs move faster than your LinkedIn feed
In The Social Network, Facebook’s fictionalized co-founder Sean Parker delivers a now-famous line: “A million dollars isn’t cool. You know what’s cool? A billion dollars.” Fast forward to 2025, and that mindset is shifting. In Silicon Valley today, what’s “cool” isn’t relentless expansion—it’s ruthless efficiency.
The technology sector’s post-pandemic hiring spree is now in full reverse. Some of the industry’s biggest names—including Microsoft, Meta, and Salesforce—are making deep cuts, citing performance concerns, AI investments, and shifting economic priorities.
This isn’t just another cycle of boom and bust; it’s a fundamental recalibration of how tech giants view their workforce, their spending, and their future.
For much of the past decade, tech firms operated on a growth-at-all-costs model, with headcounts swelling to meet ambitious expansion plans. Now, the tide is turning. Microsoft’s latest round of layoffs targets underperforming employees, with some reportedly dismissed without severance.
Meta is cutting 5% of its workforce, focusing on what it calls “low performers,” a move that has sparked criticism from employees questioning the fairness of performance reviews. Meanwhile, Salesforce and Workday have both announced cuts in response to shifting market conditions.
For workers, the abrupt change in direction is jarring. Many were hired at a time when talent wars drove up salaries and perks, making tech one of the most competitive employment sectors.
Now, even companies that once resisted layoffs, like Workday, are trimming staff. The company is cutting 1,750 jobs—about 8.5% of its workforce—citing the need to focus on AI-driven efficiencies.
Artificial intelligence is playing a central role in these layoffs—not as a reason for declining business but as a justification for reshaping workforce needs. Companies investing in AI tools and automation are finding ways to do more with fewer people, particularly in operational and administrative roles.
Microsoft’s focus on AI is well documented, with its multi-billion-dollar investment in OpenAI setting the stage for a wave of AI-driven efficiencies. The company’s latest round of job cuts suggests that even as AI creates new opportunities, it is also displacing traditional roles, particularly in sales, security, and gaming divisions.
At Meta, Mark Zuckerberg’s push toward a “year of efficiency” is translating into deeper scrutiny of employee performance, with AI and automation playing a growing role in evaluating productivity.
The company’s approach—targeting so-called “low performers”—has sparked debate, as employees push back against opaque evaluation criteria.
If the 2020s began with a hiring frenzy, they are now defined by a ruthless focus on profitability. Investors are rewarding companies that trim excess, prioritize efficiency, and demonstrate clear paths to sustained margins. Tech firms that once competed for talent with stock-heavy compensation packages are now finding those same packages under pressure amid market volatility.
This shift is not just about balancing budgets—it’s a recalibration of expectations. The high-growth, high-burn-rate model is fading, replaced by a demand for leaner, more resilient operations. Hiring may pick up again, but for now, the message is clear: efficiency, not expansion, is the new priority.
While layoffs dominate the headlines, they are just one piece of a larger transformation. The companies making cuts today are also investing in AI, automation, and emerging technologies that will define the next wave of digital transformation.
For employees and job seekers, the landscape is shifting. The days of rapid-fire hiring may be over, replaced by a more selective, performance-driven approach.
For businesses, the challenge will be balancing innovation with workforce stability—because while layoffs may please shareholders in the short term, the long-term winners will be those that navigate disruption without losing sight of the talent that drives their success.