Apr 10, 2025
Khushi RawatWhy Are Tech Companies Laying-off Employees?
Global markets are under pressure due to ongoing economic uncertainty, particularly fears surrounding a potential US recession and disappointing earnings forecasts. As a result, major tech companies have initiated layoffs, affecting thousands of employees worldwide.
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What Are The Reported Number of Layoffs in 2025?
According to the latest 2025 reports, 226 tech companies have carried out layoffs, impacting a total of 45,503 employees. Here's a closer look at some of the most notable layoffs across the tech industry:
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Microsoft
Microsoft, a major player in business software, reportedly laid off managers and non-technical staff on April 9, 2025. Earlier, on April 7, the company halted some operations in China, resulting in 2,000 job cuts.
Source: shutterstock
Wing Cloud
Wing Cloud, a company aiming to reinvent cloud development, shut down despite raising $20 million in funding. On April 6, 2025, the company laid off all 16 employees—100% of its workforce.
Source: Wing Cloud
Loop Earplugs
Loop Earplugs, known for combining sound innovation with stylish design, laid off 55 employees—roughly 17% of its workforce—on April 9, 2025.
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Craft Ventures
Craft Ventures, an investment firm focused on emerging technologies like generative AI, announced layoffs of 6 employees on April 6, 2025. The move followed the co-founder stepping down from an active role.
Source: Craft Ventures
Coho AI
Coho AI, a company specializing in optimizing customer engagement strategies, shut down operations entirely on April 6, 2025. The company laid off 100% of its workforce. Some employees are expected to be absorbed by Yotpo following the closure.
Source: Coho AI
Nio, an electric vehicle manufacturer, announced global layoffs on April 4, 2025. The company is struggling with declining sales and falling stock prices.
Source: Nio
Neon Machine
Neon Machine, the developer behind the game Shrapnel, laid off 90 employees—about 90% of its workforce—on April 4, 2025. The company is reportedly running out of cash and is seeking financial backing from the Chinese government.
Source: Neon Machine
Automattic
Automattic, the parent company of WordPress and a major contributor to open-source blogging and CMS tools, laid off 270 employees—16% of its total workforce—on April 2, 2025.
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SurveyMonkey, a well-known platform for online surveys, laid off 150 employees, which accounts for 12% of its workforce.
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