Over 90,000 Technology Pieces Expected to Disappear by May 2025. The Future Remains Grim for Junior Developers
The Unrelenting Tech Layoff Crisis of 2025
The tech sector is weathering a brutal storm, with over 370,000 employees already shown the door since last year, and the trend ain't slowing down. By the end of 2025, experts predict a staggering 235,000 more layoffs could happen, making it a nobody's-safe situation.
Let's take a closer look at the carnage so far. From January 1 to May 20, 2025, around 90,000 tech workers have been sacked worldwide, equating to 646 unemployed techies daily. The U.S. is taking the worst hit, with 72% of layoffs happening at American tech companies. California leads the way with over 38,000 job losses, followed closely by Washington State with 13,385.
Intel, the big cheese in the chip-making industry, is leading the charge, reportedly firing around 20% of its workforce. Though exact numbers are under wraps, it's estimated that Intel may let go of around 20,000 employees this year.
This isn't just an American problem. Japan, Sweden, Switzerland, India, and the UK are also feeling the pain, with notable job cuts at Panasonic (Japan), Northvolt (Sweden), STMicro (Switzerland), Ola Electric and Infosys (India), and Arrival and Wise (UK).
The AI-Fueled Firing Spree
You probably saw this coming — Artificial Intelligence (AI) is gobbling up jobs. Sounds familiar? Remember when we said, "AI is writing code and taking jobs"? Well, it's no joke. Microsoft CEO Satya Nadella himself admitted that AI is now penning up to 30% of Microsoft's code. Juniors, here's what that means for you.
AI isn't just after coders, either. Design, customer service, data analysis — automation is starting to nibble at those roles, too.
Not Just AI
The layoffs aren't solely because of AI. Some of it is due to pandemic-induced overhiring, where companies hired like crazy during lockdowns. But AI has certainly been a catalyst for these cuts.
It's important to note that while companies are slashing jobs, they're also pumping more money than ever into AI. So, while they're firing thousands of humans, their AI budgets are on a roll.
A Changing Landscape in Zimbabwe
You might be thinking it's all a "first-world problem," but we can't turn a blind eye to Zimbabwe. Our best developers remotely work for companies in the U.S., Europe, and South Africa. If junior roles are drying up worldwide, Zimbabwean devs are going to feel the sting.
Already, local developers are reporting contract renewals aren't guaranteed and they're being asked to upskill, adapt, and work with AI tools or risk losing their jobs. Plus, our universities keep churning out Computer Science graduates, and by the time they graduate, those jobs might not exist anymore.
What's Next?
It's not all doom and gloom. AI is taking jobs, yes, but it's also creating new ones—things like prompt engineer, AI/ML engineer, and AI ethics auditor. Read more about the jobs AI is creating here: AI is writing code and taking jobs.
The writing's on the wall — AI has arrived, and it's shaking up the tech industry. If you're in tech, the only way to survive is to adapt, and fast!
Article reference: RationalFX report on tech layoffs
Insight: Current Trends in Tech Layoffs for 2025 saw over 62,000 employees affected across 284 companies in the first five months of the year, with notable companies like Microsoft, Google, and Intel making substantial cuts. Notable monthly layoffs include around 16,000 in May 2025, 16,234 in February 2025, and 29,000 in March 2025. India has experienced an 8.4% growth in IT and attracted significant investments, signaling global labor shifts. The ongoing layoffs are part of broader structural adjustments in the tech labor market, reflecting economic conditions and strategic business realignments, as well as AI playing a role in job losses due to automation. While AI is a factor in the layoffs, it's also driving innovation and investment in certain areas, such as engineering talent within companies like Microsoft.
In the face of the ongoing tech layoff crisis, there's a dire need for individuals to adapt and upskill, especially in areas like AI and machine learning, as these fields are projected to create new jobs rather than purely eliminating them. Simultaneously, the education-and-self-development sector holds significant importance, as it equips individuals with the necessary skills to navigate the ever-evolving tech landscape and secure positions in the finance industry, where AI is increasingly taking on roles in code writing and other functions.
