Global Layoff Wave: Tech and Fashion Giants Cut Over 25,000 Jobs
In recent weeks, major corporations including Microsoft, Amazon, Panasonic, PwC, CrowdStrike, and Burberry have announced significant job cuts, totaling over 25,000 positions globally. These layoffs are part of broader restructuring efforts to enhance efficiency and profitability.
Job CutsRestructuringGlobal EconomyCorporate StrategyLayoffsReal EstateMay 18, 2025
Microsoft: 6,000 Jobs Axed in Structural Realignment
Microsoft has announced the layoff of over 6,000 employees, around 3 per cent of its global workforce, as part of a deep internal overhaul. The cuts, primarily targeting middle management roles, are designed to flatten organizational layers and improve decision-making speeds. “This is not about performance—this is a structural change,” a Microsoft official stated. The firm, which still maintains focus on AI investment, has introduced a stricter performance management system including a two-year rehire ban for underperformers and mandatory response to performance improvement plans within five days. This is Microsoft’s most significant layoff since 2023 when it cut 10,000 jobs.
Amazon: Internal Review Results in Targeted Layoffs
Amazon has trimmed around 100 jobs from its devices and services division—home to products like Echo and Fire TV—following an internal review to better align staff with evolving product strategies. “As part of our ongoing work... we’ve made the difficult decision to eliminate a small number of roles,” a company spokesperson told Reuters. CEO Andy Jassy is spearheading a leaner corporate structure with fewer layers of management, pushing for a 15 per cent increase in individual contributor-to-manager ratio. Jassy has been vocal in promoting meritocracy and operational efficiency across Amazon's sprawling organization.
Panasonic: 10,000 Jobs to Go by 2026 in Global Shake-Up
Panasonic plans to eliminate 10,000 jobs—4 per cent of its global workforce—by March 2026, citing the need to address “exceptionally high” general and administrative costs. “Compared with industry peers that have already moved ahead with structural reforms, our selling, general and administrative expenses ratio remains exceptionally high,” said President Yuki Kusumi in a press briefing. Half the layoffs will affect Japanese operations, with the remainder hitting overseas divisions. The company is consolidating sales and back-office functions and may divest underperforming segments such as its television business. Panasonic anticipates a ¥130 billion (£730 million) earnings hit from the restructuring.
PwC: 1,500 US Staff Cut Amid Slowing Demand
PricewaterhouseCoopers (PwC) has let go of 1,500 employees—approximately 2 per cent of its US workforce—mostly from audit and tax departments, citing “historically low attrition rates.” “This was a difficult decision, and we made it with care, thoughtfulness and a deep awareness of its impact on our people,” PwC stated. The firm reportedly delivered the news through abrupt “time-sensitive” Teams meetings, catching many recent hires and near-promotees off guard. PwC, along with fellow Big Four firms Deloitte and KPMG, has scaled back campus recruitment and hiring in light of a softening business environment.
CrowdStrike: 5 Per Cent Reduction Despite Strong Financials
Cybersecurity leader CrowdStrike has reduced its workforce by 5 per cent—about 500 jobs—despite a 25 per cent rise in quarterly revenue, totaling $1.06 billion. The cuts aim to streamline operations and allocate resources to strategic areas like product engineering and customer support. “While we will continue to prudently hire... we are reducing roles in some areas of the business,” CEO George Kurtz said in a company-wide message. The company, which is targeting $10 billion in annual recurring revenue by 2026, expects up to $53 million in restructuring-related expenses.
Burberry: 1,700 Jobs Cut as Schulman Reshapes Luxury House
Under new CEO Joshua Schulman, Burberry is slashing 1,700 positions—nearly 20 per cent of its global workforce—in a dramatic cost-saving campaign. Most roles cut are office-based, and the Castleford trench coat factory night shift will be scrapped due to inventory overstock. “Our brand metrics have all shown a significant improvement in the second half versus the first half,” Schulman noted. Despite a 6 per cent sales dip in the final quarter, Burberry posted a £26 million profit for FY25. Schulman is steering the brand back to its British heritage while shedding underperforming segments and doubling down on luxury leather goods.
These layoffs, while varied in sector and scope, underscore a common theme: the global corporate world is recalibrating. With rising operational costs, technological disruptions, and changing consumer preferences, firms are moving away from bloated hierarchies and underperforming divisions. Consultancy group McKinsey & Company noted in a 2024 report that “post-pandemic optimism gave way to fiscal discipline” as companies grapple with inflationary pressures, uneven recovery, and investor demand for leaner operations. While some critics argue that corporations are prioritizing profit over people, especially amid record profits in sectors like tech, others contend that proactive structural reforms may be necessary to safeguard long-term sustainability.
Frequently Asked Questions
Why are major companies cutting jobs?
Major companies are cutting jobs as part of broader cost-cutting and restructuring efforts aimed at boosting efficiency, increasing profitability, and responding to shifting business priorities. These actions are often driven by rising operational costs, technological disruptions, and changing consumer preferences.
What sectors are most affected by job cuts?
The sectors most affected by job cuts include technology, fashion, cybersecurity, and consultancy. These industries are facing significant changes and are implementing restructuring strategies to remain competitive and profitable.
How are companies like Microsoft and Amazon justifying their job cuts?
Companies like Microsoft and Amazon are justifying their job cuts by citing the need for structural realignment and improved efficiency. Microsoft, for example, is flattening organizational layers to speed up decision-making, while Amazon is aligning staff with evolving product strategies.
What are the long-term goals of these layoffs?
The long-term goals of these layoffs include enhancing operational efficiency, reducing costs, and aligning the workforce with strategic business objectives. Companies are aiming to create leaner, more agile organizations that can better navigate economic challenges and technological changes.
How are these layoffs impacting the global economy?
These layoffs are having a significant impact on the global economy by contributing to job market instability and affecting consumer confidence. However, they also reflect a broader trend of companies adapting to new economic realities and striving for long-term sustainability.
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