Tech Sector Faces ‘Incredible Disruption’
The technology industry is the second-largest contributor to US job losses this year, with 5,639 cuts last month adding up to a total of 107,878 job cuts in 2025 so far.
“Tech firms are undergoing incredible disruption with AI that is not only costing jobs, but also making it difficult to land positions, particularly for entry-level engineers. Tech leaders have stressed that AI is changing the nature of work, and more companies are requiring their teams be trained on it.” – Challenger report
Granted, those numbers are down 8% from 2024, when 116,856 job cuts were announced during the same period last year.
The biggest industry cutting jobs in 2025, according to the report? The US government, with 299,755 planned job cuts this year (mostly federal workers impacted by DOGE).