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Resume
5 min read
Will 2025 See Another Wave of Layoffs?


As of mid-2025, we're already seeing record-breaking job cuts—nearly 700,000 announced in the U.S. through May, an 80% increase compared to last year. Key sectors—including tech, retail, government, and finance—have been hit hard. So, will layoffs continue into the latter half of 2025? The evidence points to multiple converging pressures—economic uncertainty, AI-driven cost reductions, and government spending cuts—that suggest further workforce reductions may be on the horizon.
1. Tech Layoff Momentum
Major firms like Google, Microsoft, Amazon, and Intel have already trimmed tens of thousands of roles—Google alone initiated voluntary buyouts in June 2025, while Microsoft is expected to reduce another 7,000 jobs amid its $80 billion AI investment push.
The tech sector has logged roughly 75,000 job cuts in the first five months of 2025—up sharply from about 55,000 in the same period in 2024.
With AI ramping up automation and reducing the need for middle-tier roles, the trend looks set to continue for the rest of the year.
2. Corporate Restructuring in Consumer Goods
P&G recently announced 7,000 layoffs, part of a wider industry shift toward digitization and automation amid weak consumer demand and global trade uncertainty.
Similar actions are being taken by Unilever and Kimberly‑Clark—companies are prioritizing leaner operations and streamlined portfolios.
3. Retail and E-commerce Pressure
The retail sector has experienced a massive 274% spike in layoffs, with nearly 76,000 jobs lost so far.
Major store closures by Macy’s, JCPenney, Joann, Walgreens, and others indicate deeper structural shifts in consumer behavior.
As more retailers struggle with high costs and depressed sales, this sector remains at serious risk.
4. Government and Public Sector Cuts
Over 275,000 federal civilian roles have been cut, transferred, or offered voluntary exit packages in 2025—about 12% of the federal workforce.
This wave stems from the Department of Government Efficiency’s mandate to streamline government functions—cutting jobs across agencies like the CDC, NIH, DOD, IRS, and Interior.
Experts predict more reductions in federal staffing, as another round is anticipated in late summer or fall.
5. Finance, Banking & Fintech
Even resilient banks like Morgan Stanley, Bank of America, Goldman Sachs, JPMorgan, and Citigroup are undergoing cutbacks—targeting back-office, mid-level, and junior roles.
Fintech companies are similarly retrenching amid tighter regulation and weaker funding.
Analysts expect a secondary layoff wave in finance during late 2025 if projected deal flow doesn’t materialize.
6. Economic, Geopolitical & Policy Backdrop
Persistent inflation, high interest rates, and tariff-related trade uncertainty are weighing on corporate earnings and confidence.
A potential recession looms—employee confidence has slumped to levels last seen during the pandemic.
Companies under investor pressure are opting for cost-cutting through workforce reductions and automation—a strategy most visible in tech and consumer goods.
Will the Layoff Wave Continue?
Evidence Points to Yes:
AI-driven automation is steadily replacing roles, especially in tech and finance.
Mid-year corporate earnings reviews often trigger second-round layoffs.
Public sector cuts are far from over, with more restructuring expected in fall 2025.
Macroeconomic stressors—tariffs, inflation—are unlikely to ease significantly.
But There Are Offsets:
Consumer spending is forecast to grow (~2.9% in 2025), and stimulus via rate cuts may stabilize delayed hiring.
Some industries—healthcare, green tech, cybersecurity, and engineering—continue to expand.
Professional Outlook:
Expect the second half of 2025 to remain turbulent, especially in cost-sensitive industries. However, professionals with skills in AI, data, cybersecurity, healthcare, and clean energy will be better positioned. Staying agile and upskilling remains vital.
Final Take
Yes, another wave of layoffs in late 2025 looks likely—driven by a combination of automation, government efficiency programs, corporate restructuring, and ongoing economic pressure. The shape and scale of that wave will depend on macroeconomic trends and companies' ability to adapt. Still, sectors investing in future-focused skills are likely to hold or grow through the storm.


As a co-founder and CEO of NxtJob.ai, I help mid and senior level professionals land 3-5 job offers within 3 months with a substantial salary hike. I am an Internationally Certified Career Coach, Resume Writing Expert, Job Interview and LinkedIn Strategist, and a Motivational Speaker.
Richik Sinha Roy
CEO, NxtJob
Everything you need to know
Here you can find solutions to all your queries.
Will tech layoffs continue through late 2025?
Will tech layoffs continue through late 2025?
Are any industries safe from layoffs?
Are any industries safe from layoffs?
How should professionals prepare?
How should professionals prepare?
Why are so many companies laying off employees in 2025?
Why are so many companies laying off employees in 2025?

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5 min read
Will 2025 See Another Wave of Layoffs?


As of mid-2025, we're already seeing record-breaking job cuts—nearly 700,000 announced in the U.S. through May, an 80% increase compared to last year. Key sectors—including tech, retail, government, and finance—have been hit hard. So, will layoffs continue into the latter half of 2025? The evidence points to multiple converging pressures—economic uncertainty, AI-driven cost reductions, and government spending cuts—that suggest further workforce reductions may be on the horizon.
1. Tech Layoff Momentum
Major firms like Google, Microsoft, Amazon, and Intel have already trimmed tens of thousands of roles—Google alone initiated voluntary buyouts in June 2025, while Microsoft is expected to reduce another 7,000 jobs amid its $80 billion AI investment push.
The tech sector has logged roughly 75,000 job cuts in the first five months of 2025—up sharply from about 55,000 in the same period in 2024.
With AI ramping up automation and reducing the need for middle-tier roles, the trend looks set to continue for the rest of the year.
2. Corporate Restructuring in Consumer Goods
P&G recently announced 7,000 layoffs, part of a wider industry shift toward digitization and automation amid weak consumer demand and global trade uncertainty.
Similar actions are being taken by Unilever and Kimberly‑Clark—companies are prioritizing leaner operations and streamlined portfolios.
3. Retail and E-commerce Pressure
The retail sector has experienced a massive 274% spike in layoffs, with nearly 76,000 jobs lost so far.
Major store closures by Macy’s, JCPenney, Joann, Walgreens, and others indicate deeper structural shifts in consumer behavior.
As more retailers struggle with high costs and depressed sales, this sector remains at serious risk.
4. Government and Public Sector Cuts
Over 275,000 federal civilian roles have been cut, transferred, or offered voluntary exit packages in 2025—about 12% of the federal workforce.
This wave stems from the Department of Government Efficiency’s mandate to streamline government functions—cutting jobs across agencies like the CDC, NIH, DOD, IRS, and Interior.
Experts predict more reductions in federal staffing, as another round is anticipated in late summer or fall.
5. Finance, Banking & Fintech
Even resilient banks like Morgan Stanley, Bank of America, Goldman Sachs, JPMorgan, and Citigroup are undergoing cutbacks—targeting back-office, mid-level, and junior roles.
Fintech companies are similarly retrenching amid tighter regulation and weaker funding.
Analysts expect a secondary layoff wave in finance during late 2025 if projected deal flow doesn’t materialize.
6. Economic, Geopolitical & Policy Backdrop
Persistent inflation, high interest rates, and tariff-related trade uncertainty are weighing on corporate earnings and confidence.
A potential recession looms—employee confidence has slumped to levels last seen during the pandemic.
Companies under investor pressure are opting for cost-cutting through workforce reductions and automation—a strategy most visible in tech and consumer goods.
Will the Layoff Wave Continue?
Evidence Points to Yes:
AI-driven automation is steadily replacing roles, especially in tech and finance.
Mid-year corporate earnings reviews often trigger second-round layoffs.
Public sector cuts are far from over, with more restructuring expected in fall 2025.
Macroeconomic stressors—tariffs, inflation—are unlikely to ease significantly.
But There Are Offsets:
Consumer spending is forecast to grow (~2.9% in 2025), and stimulus via rate cuts may stabilize delayed hiring.
Some industries—healthcare, green tech, cybersecurity, and engineering—continue to expand.
Professional Outlook:
Expect the second half of 2025 to remain turbulent, especially in cost-sensitive industries. However, professionals with skills in AI, data, cybersecurity, healthcare, and clean energy will be better positioned. Staying agile and upskilling remains vital.
Final Take
Yes, another wave of layoffs in late 2025 looks likely—driven by a combination of automation, government efficiency programs, corporate restructuring, and ongoing economic pressure. The shape and scale of that wave will depend on macroeconomic trends and companies' ability to adapt. Still, sectors investing in future-focused skills are likely to hold or grow through the storm.


As a co-founder and CEO of NxtJob.ai, I help mid and senior level professionals land 3-5 job offers within 3 months with a substantial salary hike. I am an Internationally Certified Career Coach, Resume Writing Expert, Job Interview and LinkedIn Strategist, and a Motivational Speaker.
Richik Sinha Roy
CEO, NxtJob
Will tech layoffs continue through late 2025?
Will tech layoffs continue through late 2025?
Are any industries safe from layoffs?
Are any industries safe from layoffs?
How should professionals prepare?
How should professionals prepare?
Why are so many companies laying off employees in 2025?
Why are so many companies laying off employees in 2025?
Everything you need to know
Here you can find solutions to all your queries.
Job search
5 min read
Will 2025 See Another Wave of Layoffs?

As of mid-2025, we're already seeing record-breaking job cuts—nearly 700,000 announced in the U.S. through May, an 80% increase compared to last year. Key sectors—including tech, retail, government, and finance—have been hit hard. So, will layoffs continue into the latter half of 2025? The evidence points to multiple converging pressures—economic uncertainty, AI-driven cost reductions, and government spending cuts—that suggest further workforce reductions may be on the horizon.
1. Tech Layoff Momentum
Major firms like Google, Microsoft, Amazon, and Intel have already trimmed tens of thousands of roles—Google alone initiated voluntary buyouts in June 2025, while Microsoft is expected to reduce another 7,000 jobs amid its $80 billion AI investment push.
The tech sector has logged roughly 75,000 job cuts in the first five months of 2025—up sharply from about 55,000 in the same period in 2024.
With AI ramping up automation and reducing the need for middle-tier roles, the trend looks set to continue for the rest of the year.
2. Corporate Restructuring in Consumer Goods
P&G recently announced 7,000 layoffs, part of a wider industry shift toward digitization and automation amid weak consumer demand and global trade uncertainty.
Similar actions are being taken by Unilever and Kimberly‑Clark—companies are prioritizing leaner operations and streamlined portfolios.
3. Retail and E-commerce Pressure
The retail sector has experienced a massive 274% spike in layoffs, with nearly 76,000 jobs lost so far.
Major store closures by Macy’s, JCPenney, Joann, Walgreens, and others indicate deeper structural shifts in consumer behavior.
As more retailers struggle with high costs and depressed sales, this sector remains at serious risk.
4. Government and Public Sector Cuts
Over 275,000 federal civilian roles have been cut, transferred, or offered voluntary exit packages in 2025—about 12% of the federal workforce.
This wave stems from the Department of Government Efficiency’s mandate to streamline government functions—cutting jobs across agencies like the CDC, NIH, DOD, IRS, and Interior.
Experts predict more reductions in federal staffing, as another round is anticipated in late summer or fall.
5. Finance, Banking & Fintech
Even resilient banks like Morgan Stanley, Bank of America, Goldman Sachs, JPMorgan, and Citigroup are undergoing cutbacks—targeting back-office, mid-level, and junior roles.
Fintech companies are similarly retrenching amid tighter regulation and weaker funding.
Analysts expect a secondary layoff wave in finance during late 2025 if projected deal flow doesn’t materialize.
6. Economic, Geopolitical & Policy Backdrop
Persistent inflation, high interest rates, and tariff-related trade uncertainty are weighing on corporate earnings and confidence.
A potential recession looms—employee confidence has slumped to levels last seen during the pandemic.
Companies under investor pressure are opting for cost-cutting through workforce reductions and automation—a strategy most visible in tech and consumer goods.
Will the Layoff Wave Continue?
Evidence Points to Yes:
AI-driven automation is steadily replacing roles, especially in tech and finance.
Mid-year corporate earnings reviews often trigger second-round layoffs.
Public sector cuts are far from over, with more restructuring expected in fall 2025.
Macroeconomic stressors—tariffs, inflation—are unlikely to ease significantly.
But There Are Offsets:
Consumer spending is forecast to grow (~2.9% in 2025), and stimulus via rate cuts may stabilize delayed hiring.
Some industries—healthcare, green tech, cybersecurity, and engineering—continue to expand.
Professional Outlook:
Expect the second half of 2025 to remain turbulent, especially in cost-sensitive industries. However, professionals with skills in AI, data, cybersecurity, healthcare, and clean energy will be better positioned. Staying agile and upskilling remains vital.
Final Take
Yes, another wave of layoffs in late 2025 looks likely—driven by a combination of automation, government efficiency programs, corporate restructuring, and ongoing economic pressure. The shape and scale of that wave will depend on macroeconomic trends and companies' ability to adapt. Still, sectors investing in future-focused skills are likely to hold or grow through the storm.


Resume
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How to Ask for a Salary Hike in an Interview: Tips to Negotiate Confidently
Learn proven strategies to request a salary hike during an interview. Discover how to discuss compensation professionally, justify your expectations, and negotiate the pay you deserve.

As a co-founder and CEO of NxtJob.ai, I help mid and senior level professionals land 3-5 job offers within 3 months with a substantial salary hike. I am an Internationally Certified Career Coach, Resume Writing Expert, Job Interview and LinkedIn Strategist, and a Motivational Speaker.
Richik Sinha Roy
CEO, NxtJob
Everything you need to know
Here you can find solutions to all your queries.
Will tech layoffs continue through late 2025?
Are any industries safe from layoffs?
How should professionals prepare?
Why are so many companies laying off employees in 2025?
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