Tech layoffs persist into 2025, driven by pandemic-era over-expansion and rising costs. High-demand roles in AI and cybersecurity offer hope, but professionals must adapt through re-skilling. The industry faces a reset phase with uncertain recovery timelines.

The tech industry has witnessed a wave of layoffs continuing into 2025, with thousands of professionals losing their jobs across major companies. The layoffs, which began in 2023, have been attributed to over-expansion during the COVID-19 pandemic, rising development costs, and a shift in consumer habits. Companies like Embracer Group, Unity Technologies, and Microsoft Gaming have been among the hardest hit, with over 25,000 jobs lost in the video game industry alone.
Despite the downturn, certain roles remain in high demand, particularly in AI, cybersecurity, and cloud computing. Professionals are increasingly re-skilling to adapt to the evolving job market, with many turning to online courses and certifications to stay competitive. The International Game Developers Association (IGDA) reports a global unemployment rate of 4.8% within the game industry, with projections suggesting further challenges ahead.
Experts believe the industry is in a "reset phase," with companies restructuring to align with post-pandemic realities. While AI adoption has raised concerns about job displacement, it has also created new opportunities in automation and machine learning. The job market is expected to stabilize by mid-2025, but the road ahead remains uncertain for many.