The wave of layoffs that took hold during the COVID-19 pandemic is showing no signs of slowing down, as major U.S. corporations continue to make massive job cuts. From household names in tech like Meta, Google to global giants in energy like BP, Chevron, the unfolding trend of workforce reductions is concerning given the fact that it will impact thousands, leaving lasting effects on employees, companies and, in turn, the economy.
Let us dive into the surge in job cuts in recent months and what it means.
Big Tech layoffs in 2025
Meta
No. of Employees to be Laid Off: 3,600+
Industry: Technology
Meta Layoffs reason: The parent company of Instagram & WhatsApp, plans to lay off more than 3,600 employees, continuing its trend of workforce reductions amid restructuring efforts.
No. of Employees to be Laid Off: Undisclosed
Industry: Technology
Google Layoffs reason: The tech giant is planning job cuts in its People Operations and Cloud divisions. The company has introduced a voluntary exit program for U.S.-based People Operations employees, allowing them to leave with benefits. The exact number of affected workers has not been disclosed.
Salesforce
No. of Employees to be Laid Off: 1,000
Industry: Technology
Salesforce layoff will impact more than 1,000 employees, though displaced workers will have the option to apply for other roles internally. The company has not disclosed which divisions will be affected.
Other major layoffs in 2025
Starbucks
No. of Employees to be Laid Off: 1,100
Industry: Retail
Reason: Starbucks is cutting 1,100 corporate jobs, affecting 7% of its global non-store workforce as part of a broader push for efficiency in an increasingly competitive market.
Boeing
No. of Employees to be Laid Off: 400
Industry: Aerospace
Reason: Boeing is cutting 400 jobs from its moon rocket program due to delays and rising costs associated with NASA's Artemis missions.
BlackRock
No. of Employees to be Laid Off: 200
Industry: Financial Services
Reason: BlackRock is laying off 200 employees from its 21,000-strong workforce, a move that reflects the financial sector's focus on cost-cutting amid economic uncertainty.
BP
No. of Employees to be Laid Off: 7,700 (4,700 staff & 3,000 contractors)
Industry: Energy
Reason: BP is set to lay off 7,700 employees and contractors, about 5% of its global workforce, as it seeks to cut costs and rebuild investor confidence.
Chevron
No. of Employees to be Laid Off: Up to 9,000
Industry: Energy
Reason: Chevron plans to reduce its global workforce by 15%-20% by the end of 2026, impacting up to 9,000 employees, in one of the largest layoffs in the energy sector.
Porsche
No. of Employees to be Laid Off: 1,900
Industry: Automobile
Reason: Porsche plans to cut 1,900 jobs in Germany by 2029 amid weak EV demand and economic challenges. Layoffs will be voluntary, through redundancy packages and early retirement.
Blue Origin
No. of Employees to be Laid Off: 1,000+
Industry: Aerospace
Reason: Jeff Bezos’ space company Blue Origin is cutting 10% of its workforce, potentially affecting over 1,000 employees, as it restructures operations and manages rising costs.
Source: Company Statements
Impact of layoffs on employee engagement
While the financial numbers behind these layoffs are eye-popping, the human impact is also significant. Studies show alarming declines in employee sentiment following layoffs, and how firings can hamper trust and morale, leaving employees feeling undervalued and uncertain about their future with the organization.
The hidden costs of layoffs
While the immediate savings from reduced payrolls might seem appealing, the long-term financial repercussions of layoffs are often hidden beneath the surface.
| Category | Description | Impact/Cost | Additional Notes |
| Productivity Impact | Immediate payroll savings hide long-term financial repercussions. | More than $50,000 lost per month in productivity for every 100 remaining employees. | Productivity may recover within six months, but interim losses can ripple throughout the organization. |
| Voluntary Turnover Increase | A 10% downsizing can lead to nearly a 50% increase in turnover. | Layoffs trigger a domino effect, increasing voluntary resignations. | For instance, a company of 10,000 might see resignations jump from 1,900 to 2,831, meaning an extra 931 employees exit. |
| High Replacement Costs | Replacing lost talent is expensive, costing roughly 1.25 times an employee's annual salary, with additional fees compounding the cost. | About $81,250 per replacement; for 931 extra quitters, an estimated additional cost of $75.6 million. | Other costs may include increased unemployment insurance tax rates, $5,000 for a statistician, and $500 per hour for legal counsel. |
Source: Bloomberg News, Culture Amp Study (Harvard Business Review)
Although productivity may eventually return to normal within six months, the interim period can incur significant financial losses that ripple across the organization. The series of layoffs in 2025 is not just about trimming costs; it is also a caution call for companies to re-examine their long-term strategies and the value of their human capital.
Impact of layoffs on markets and economy
Prolonged workforce instability and declining productivity may erode investor confidence, leading to declines in markets. Investors may also grow wary of a company’s ability to retain top talent, innovate, and maintain operational efficiency. If layoffs signal deeper financial troubles rather than strategic restructuring, stock prices can suffer as market sentiment shifts from optimism to concern.
The repercussions of these massive layoffs extend beyond individual companies and markets as the ripple effects can influence local economies, consumer confidence, and even national economic indicators.
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