Big Tech layoffs are accelerating in 2025, with Amazon announcing 16,000 corporate job cuts globally in January—its second major round since eliminating 14,000 roles in October 2024. Meta also cut approximately 1,500 employees from its Reality Labs division earlier this month. These cuts reflect a broader trend affecting the entire tech industry, where US tech companies announced roughly 154,000 layoffs in the past year, representing a 15% increase from 2024 and the highest of any private-sector industry.
The job market has fundamentally shifted for tech workers who once enjoyed abundant opportunities and constant recruiter attention. Tech job postings have plunged 33% on Indeed from early 2020 levels as of December, driven by economic uncertainty and the early effects of AI adoption. Companies like Amazon, Microsoft, Meta, Google, and Tesla have each announced plans to cut at least 10,000 employees in recent years, flooding the market with experienced workers competing for fewer positions.
James Hwang, laid off from his IT support engineering role at Amazon in October, applied to 100 jobs without receiving any interviews despite years of experience at the tech giant. Mody Khan, who lost his Microsoft job in December 2024 after five years, has depleted much of his savings and fears losing his home. He notes that companies are “looking for Superman” while taking longer to fill roles and citing a need to be more efficient in the AI age.
The competition has intensified dramatically. Sriram Ramkrishna, laid off from Intel for the second time in July, reports seeing at least 400 applicants for every job posting he’s interested in—far exceeding anything he experienced during his 2016 layoff. Companies are rightsizing after pandemic overhiring and becoming leaner as they integrate AI technologies.
Some workers have found success through strategic approaches. Deborah Henderson landed a role at Meta just two months after her 14-year Microsoft tenure ended by leveraging LinkedIn networking and a Discord support group. Mike Kostersitz, after 31 years at Microsoft, hired a career coach and expanded his search beyond Big Tech, eventually securing a position at Nike after six months. His advice: develop a solid job search strategy and maintain persistence, as “it’s a game of chicken right now.”
Key Quotes
It feels like recruiters are looking for Superman
Mody Khan, who lost his Microsoft job in December 2024 after five years, describes the heightened expectations companies now have for candidates. This reflects how AI adoption is enabling companies to demand more capabilities from individual workers while hiring fewer people overall.
If an employer I’m interested in posts a job, there’s bound to be at least 400 applicants
Sriram Ramkrishna, laid off from Intel for the second time in July, illustrates the unprecedented level of competition in today’s tech job market. This massive applicant pool results from widespread layoffs combined with dramatically reduced hiring as companies integrate AI technologies.
It’s a game of chicken right now. The person who has the longer breath and can stick it out longer will get the job
Mike Kostersitz, who spent 31 years at Microsoft before being laid off, shares advice from a career advisor. This quote captures the grueling reality of the AI-era job market where persistence and financial reserves often matter more than credentials.
Our Take
This article exposes the dark side of AI’s productivity promise: while companies tout efficiency gains, thousands of experienced workers face career devastation. The timing is particularly revealing—companies are simultaneously investing billions in AI infrastructure while eliminating the human workforce that built their success. What’s most concerning is that even elite credentials no longer guarantee employment, suggesting AI is commoditizing skills once considered irreplaceable. The 400+ applicants per posting metric indicates we’re witnessing a structural shift, not a cyclical downturn. Companies aren’t planning to rehire these positions—they’re betting AI tools will fill the gap. This creates a troubling paradox: as AI makes workers more productive, it also makes many redundant. The workers who succeed, like Henderson and Kostersitz, share a common trait: aggressive networking and strategic adaptation. The message is clear: in the AI era, technical skills alone won’t suffice—workers need resilience, networking prowess, and willingness to pivot beyond traditional Big Tech.
Why This Matters
This story reveals AI’s tangible impact on the tech workforce, marking a critical inflection point in the industry’s evolution. While AI promises increased productivity and efficiency, it’s simultaneously reducing demand for traditional tech roles, particularly in IT support, engineering, and corporate functions. The 33% decline in tech job postings coinciding with AI adoption demonstrates how automation is reshaping hiring practices faster than many anticipated.
For businesses, this signals a fundamental shift toward leaner, AI-augmented operations where companies expect individual workers to accomplish more with AI tools rather than expanding headcount. The fact that experienced workers from prestigious companies like Amazon, Microsoft, and Meta are struggling to find roles—despite impressive credentials—suggests AI is disrupting even high-skilled positions previously considered secure. This trend will likely accelerate as generative AI tools become more sophisticated, forcing workers to continuously upskill and adapt. The broader implication is that job security in tech now depends on AI literacy and adaptability rather than traditional credentials alone.
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Source: https://www.businessinsider.com/laid-off-amazon-tech-workers-job-openings-resume-interviews-2026-1