Source: The post Mass layoffs are returning in Big Tech 2025 has been created, based on the article “A DIFFERENT WAY FORWARD: In culture that equates productivity with purpose, what happens when jobs vanish?” published in “Indian Express” on 10th February 2025.
UPSC Syllabus Topic: GS Paper3- Employment
Context: The article discusses the return of mass layoffs in Big Tech in early 2025. Companies like Meta, Amazon, and Google are cutting jobs. AI is replacing workers. People are struggling financially and emotionally. Many are searching for new ways to find purpose and stability.
Why Are Mass Layoffs Returning in 2025?
Big Tech companies like Meta, Amazon, Microsoft, and Google are cutting jobs again. Layoffs had decreased in 2024 but are increasing in early 2025. Companies are focusing on cost-cutting, reversing earlier hiring trends.
What Is Causing These Layoffs?
Several factors are driving job losses:
- Political Changes: The return of Donald Trump as U.S. President is reshaping Silicon Valley. Companies are adjusting to new policies and increased regulatory scrutiny.
- Company Strategies: Meta laid off 5% of its workforce, citing “low performance.” Alphabet introduced voluntary exit programs, similar to Elon Musk’s restructuring of Twitter (now X).
- Artificial Intelligence (AI): AI is both a threat and an opportunity. A report suggests that 60% of jobs in advanced economies are vulnerable to automation. China’s DeepSeek has shown that innovation can happen with small research teams, reducing the need for large workforces.
How Are Layoffs Affecting Workers?
Job loss is causing financial and emotional distress:
- Many workers are unable to afford their apartments.
- Severance packages are running out, creating financial uncertainty.
- Job searches feel overwhelming, as past career achievements no longer guarantee employment.
- Work was once a source of identity, but now that sense of stability is disappearing.
What Are People Doing to Survive?
Workers are trying alternative income sources:
- Some move back in with their parents or sublet their apartments.
- Some take contract work without benefits or long-term security.
- Others monetize hobbies, selling art, essays, or handmade items.
- Many turn to social media, creating vlogs, reviewing products, and selling courses on content creation.
What Is the Bigger Shift in Work Culture?
The traditional career path—starting from entry-level, reaching mid-career success, and retiring—is breaking down. The structure of work is crumbling, forcing people to find meaning outside of jobs. The future of work remains uncertain, but new lifestyles are emerging.
Question for practice:
Examine the factors driving mass layoffs in Big Tech in early 2025.
