When Will Tech Layoffs Stop? What to Expect & Do Next 

Tech layoffs have slowed but haven’t stopped entirely, with experts predicting a more stable job market by mid-2025. While companies continue restructuring, demand remains strong for roles in AI, cybersecurity, and cloud computing. Early 2025 saw fewer layoffs compared to 2024, signaling cautious optimism among employers. However, economic uncertainties and shifting industry priorities mean some cuts could extend into late 2025 or early 2026. Staying adaptable and upskilling in growth areas is key to long-term job security.

This year isn’t exactly off to a great start for tech workers. With layoffs continuing to make headlines, it’s no wonder everyone’s feeling a bit uneasy. Whether you’re in coding, IT, or just landed your first junior dev position, it’s hard not to second-guess your next career move with all the uncertainty swirling around. 

Tech companies sold us the dream — job security, big paychecks, and endless opportunities. But now, with jobs moving overseas and the industry shrinking, it feels like we’re watching the golden age of tech come to an end. 

While there’s no magic ball to predict when these layoffs will stop, there’s still hope. This guide will clear things up and cover: 

• When layoffs might slow down. 
• Why layoffs are happening. 
• How to spot the warning signs. 
• What tech workers can do to stay ahead. 

If you’ve been laid off, Rezi’s offering free lifetime access to their resume builder. For more help navigating this tough time, check out these guides: 

• How to Survive a Layoff 
• How to Write a Survival Job Resume 
• 20+ Resume Tips to Nail 2025’s Job Market 
• 16 Legit Ways to Make Money From Home 
• How to Triple Your Job Applications (Success Story Inside) 

When Will Tech Layoffs Slow Down? 

In short: tech layoffs have continued into 2025, with hope for a slowdown by mid-2025. Roles in AI, cybersecurity, and cloud computing remain in demand. Employers are cautiously optimistic, focusing on flexible hiring strategies amid economic uncertainties and ongoing restructuring challenges.

There’s no exact timeline, but the numbers are looking better. January 2025 kicked off with just 2,403 layoffs, a huge drop from 34,137 in January 2024, according to Layoffs.fyi. February saw a jump with 16,000+ layoffs, and March hit 5,000 (so far), but experts are hopeful layoffs will slow by mid-2025, though some restructuring could continue into late 2025 or early 2026. The worst might be behind us, but things aren’t fully stable yet. 

Tech hiring isn’t dead yet 

Despite the cuts, certain tech roles like cybersecurity, cloud computing, and AI are still in high demand. A Randstad study from November 2024 found that 75% of companies are adopting AI, but only 35% of workers got AI training in the past year. This skills gap could lead to more hiring in these areas. 

Cybersecurity is especially crucial as cybercrime costs are expected to hit $10.5 trillion annually by 2025 (way up from $3 trillion in 2015) — making it a top priority for tech companies. 

History says layoffs won’t last 

Tech goes in cycles — big hiring sprees followed by cutbacks. After a downturn, companies reorganize and eventually stabilize, leading to fewer layoffs. Plus, tough times often spark innovation, and when new tech takes off, hiring picks back up. 

Signs of hope for 2025 

Employers are feeling more optimistic about 2025. A November 2024 ZipRecruiter survey shows over 80% of employers in tech, finance, and healthcare plan to hire more in 2025. Robert Half’s 2025 Salary Guide adds that 58% of tech leaders are hiring for permanent roles, while 39% are filling vacated positions. Plus, 65% are leaning more on contract talent for projects. This shift is fueled by improving economic conditions, like lower inflation and stable interest rates, but concerns about job security and skills gaps still linger. 

Restructuring, not just cutting 

Layoffs don’t always mean fewer jobs — they’re often about restructuring. ZipRecruiter’s chief economist, Julia Pollak, explains that some companies swap roles rather than cut headcount. For example, Meta laid off 5% of staff but plans to hire new talent in AI and emerging tech later this year.

Why Are Tech Companies Laying Off Workers? 

In short: tech companies are laying off workers due to inflation, high interest rates, and recession fears, along with industry shifts and AI automation. Investor demands for cost-cutting and efficiency are also driving layoffs, even in profitable companies. 

Tech companies are all over the news with layoffs, and it seems like every week another one announces cuts. The numbers just keep piling up on Layoffs.fyi. 

Let’s break down what’s driving all these job losses. 

Economic pressures 

When the economy takes a hit, companies tighten their belts — and layoffs are often the first move. Here’s why: 

• Inflation. Rising costs make it pricier to run a business, so companies cut jobs to stay profitable. 
• High interest rates. Borrowing money is more expensive, making it harder for startups to secure funding and for big firms to invest in growth. Less cash means more layoffs. 
• Recession fears. Companies are bracing for economic uncertainty. Many are downsizing now to prepare for a possible downturn. 

Industry shifts 

Tech companies went on a hiring spree during the pandemic, expecting digital demand to last forever. But as people returned to offices, traveled more, and shopped in person, demand for certain tech services dropped. Suddenly, many companies were overstaffed. 

To stay profitable, businesses are cutting redundant roles and restructuring. Some startups that boomed during the pandemic are shutting down as funding dries up, while larger firms are scaling back after years of aggressive expansion. 

AI and automation 

AI is shaking up the tech market. Companies are using automation to cut costs and boost efficiency, replacing some roles with AI-powered solutions. 

But it’s not all bad news. AI is also creating new opportunities for those who can adapt. Learning to work alongside AI — rather than against it — is key to staying relevant. 

Investor demands 

Investors expect results, and when revenue slows or stock prices dip, they push for cost cutting — often through layoffs. Even profitable companies like Meta, Microsoft, and Alphabet have trimmed their workforce to boost efficiency and keep shareholders happy. 

Layoffs can actually drive stock prices up too. In 2023, after cutting thousands of jobs, big tech firms saw their stock values soar — Meta’s jumped nearly 50%. Many companies are also shifting resources from low-growth areas to AI and automation to stay ahead. 

How to Spot Layoff Warning Signs 

In short: layoffs might be coming if hiring slows, teams get restructured, communication turns vague, finances dip, policies shift, workloads shrink, or key employees start leaving. 

Nobody wants to be caught off guard by layoffs, but the signs are usually there if you know what to look for. Paying attention to early warning signals can give you a head start on preparing and planning your next move. 

Here are some red flags that could mean trouble is on the horizon: 

Hiring and promotion freezes 

If your company stops hiring or puts a hold on raises and promotions, it’s usually a sign they’re trying to cut costs. This could point to financial trouble ahead. 

Team restructuring 

When companies shuffle teams or merge departments, it’s often a move to save money. This can lead to redundant roles, and they might replace full-time employees with contractors or outsource tasks instead. 

Shifts in internal communication 

If your company starts talking more about cutting costs, boosting productivity, or dealing with financial issues, take note. Vague messages like “focusing on efficiency” or “aligning resources” instead of clear updates could signal layoffs. A lack of transparency around company performance is another concern. 

Financial red flags 

Keep an eye out for signs that the company’s financials aren’t looking great. If revenue is declining or growth isn’t meeting expectations, it could indicate trouble down the line. 

Sudden policy changes 

Look out for sudden policy shifts, like changes to travel, perks, or tighter restrictions on overtime and remote work. Sometimes, companies introduce new rules, like bringing remote workers back to the office, to create an opportunity for layoffs. Unexpected performance reviews or audits could also be a sign they’re preparing for larger cuts. 

Reduced workloads and canceled projects 

If your workload drops off or major projects are canceled or delayed, it could mean the company is facing financial difficulties. Watch for stalled projects, less work coming in, and a general slowdown across departments. 

Key employees leaving 

When managers or high-level employees leave unexpectedly, it’s often a sign of instability. Like animals fleeing before a storm, key employees may be the first to go before things get worse. 

How Tech Workers Can Stay Ahead 

In short: stay proactive by upskilling, networking, and exploring growth sectors or non-tech industries that need tech talent. Diversify your income with freelancing and keep your resume updated to stay ready for new opportunities. 

Don’t just wait and hope for the best — take action now so you’re ready for whatever comes next. Even if you keep your job, it never hurts to be prepared. 

• Upskill and stay relevant. Invest in your future by learning AI, cybersecurity, or cloud computing. Take online courses, join workshops, and apply what you learn through real projects or open-source contributions. 
• Network strategically. Reach out to former colleagues, join industry groups, and engage in online discussions. Let people know what you bring to the table — connections can lead to job leads, collaborations, or valuable advice. 
• Pivot to growth sectors. If your field’s shrinking, consider moving into high-demand areas like AI, cybersecurity, healthcare tech, or fintech. Shifting now can boost job security and open new opportunities. 
• Look beyond tech companies. Healthcare, finance, retail, and manufacturing all need tech talent. These industries offer stability and fresh challenges — just tailor your resume to show how your skills solve their problems. 
• Freelance and diversify your income. Platforms like Upwork and Fiverr connect you with businesses needing tech expertise. Freelancing sharpens your skills, builds your portfolio, and gives you extra financial security. 
• Update your resume. Keep your resume and LinkedIn fresh so you’re ready when opportunity knocks. If you’ve been laid off, Rezi is offering free lifetime access to its premium resume builder and a job board with real openings. 

Summary 

Here’s a quick rundown on tech layoffs and what’s ahead: 

• Tech layoffs dropped from 34,137 in January 2024 to 2,403 in January 2025, but February saw a spike of 16,000+ layoffs, showing some ongoing instability.
• High-demand roles in AI, cybersecurity, and cloud computing are still hiring despite industry-wide cuts. 
• Rising inflation, interest rates, and recession fears are pushing companies to reduce staff and tighten budgets. 
• Companies that overhired during the pandemic are now trimming their workforces as demand shifts. 
• Some companies are reassigning roles or shifting focus, particularly toward emerging fields like AI. 
• According to surveys, over 80% of employers in tech, finance, and healthcare plan to hire more in 2025, and 58% of tech leaders are hiring for permanent roles, while 39% are filling vacated positions, with 65% increasing reliance on contract talent. 
• Tech downturns are normally followed by rebounds, innovation, and renewed hiring as companies stabilize.
• Warning signs of potential layoffs include hiring freezes, restructuring, vague company messaging, policy changes, and key employees leaving. 
• Upskilling in areas like AI, cybersecurity, and cloud computing is crucial to staying relevant. 
• Consider moving to non-tech industries like healthcare, finance, or manufacturing, all of which need tech talent. 

FAQ 

Who typically gets laid off first? 

Companies usually cut non-essential roles first. That often includes entry-level employees, contractors, and teams like marketing, HR, or admin. Low performers or those in departments facing restructuring are also at higher risk. 

What jobs are least likely to be laid off? 

Jobs in healthcare, education, and public safety are some of the safest. In tech, AI, cybersecurity, and cloud computing roles stay in demand since businesses rely on them to function and innovate. Positions directly tied to revenue — like top sales roles — also tend to be more secure. 

What companies have never had layoffs? 

Several companies have famously avoided layoffs, even during tough times: 

• Lincoln Electric hasn’t laid off workers since the 1950s, thanks to its Guaranteed Continuous Employment Plan, which adjusts working hours and pay based on demand. 
• Publix, the employee-owned supermarket chain, has never had a layoff since opening in 1930 and prioritizes employee well-being. 
• Torani and Nugget Markets have kept employees on for nearly a century by focusing on job security and strategic planning. Torani, founded in 1925, avoided layoffs even during the pandemic. 
• Costco is known for treating employees well and rarely resorting to layoffs, though it has not claimed to have never laid off staff. 
• Toyota follows Japan’s “lifetime employment” tradition, making job cuts a last resort. 

How will federal layoffs affect the economy? 

Federal layoffs can shake up local economies and the broader market. With fewer government workers, consumer spending drops, and unemployment rises. Essential services can get disrupted, and government projects might stall, which could slow down overall economic growth. 

What is the biggest layoff in history? 

The largest layoff on record is the recent 2025 US federal government buyout plan, where 65,000 employees accepted voluntary separation offers (pending legal approval). Before that, the biggest corporate layoff was in 1993 when IBM let go of around 60,000 employees. 

Should you tell an interviewer you were laid off? 

Yes, be upfront and brief. Explain that the layoff was due to company restructuring, not personal performance. Highlight what you learned and how you’ve grown since. For example: “my position was eliminated due to company-wide restructuring, and I’m excited to bring my skills in [specific area] to a new role where I can help meet company goals.”