Over the past two years , workforce reductions have impacted a range of industries, including technology, finance, manufacturing, media, and retail. A Business Insider report highlights that companies are offering various reasons for recent layoffs with a key factor being the rise of technological advancements, particularly artificial intelligence (AI).
As per the recent reports, layoffs are expected to continue in 2025 with major companies like Microsoft, BlackRock and Ally Financial planning to reduce their workforce. A January 9 report from Business Insider points out that these companies are focusing on cost-cutting measures, largely driven by rapid technological advancements, especially the rise of artificial intelligence (AI). Companies like Dropbox, Google, and IBM have already announced job cuts related to AI. Here’s a look at the firms expected to follow suit in 2025:
BlackRock plans to cut about 200 jobs from its workforce of 21,000, as reported by Bloomberg. These layoffs are part of a strategy to better align the company’s resources with its changing goals. However, BlackRock will offset these reductions with significant hiring, adding 3,750 new employees in 2024 and another 2,000 in 2025. The company’s president, Rob Kapito and COO, Rob Goldstein said that these changes are crucial for reshaping the organisation to meet its future objectives.
Bridgewater Associates, the world’s largest hedge fund, recently laid off 7 per cent of its workforce as part of a strategy to streamline operations. These cuts have brought the company’s staffing levels to where thet were in 2023. The firm has struggled with employee retention in the past; in 2019, founder Ray Dalio revealed that almost 30 per cent of new hires left within 18 months.
The Washington Post plans to cut fewer than 100 jobs as part of its cost management strategy. It was confirmed by a spokesperson that these reductions will not affect the newsroom and are aimed at supporting the company’s transformation and long-term sustainability. The goal is to adapt to industry changes and engage audiences across modern platforms, according to Reuters.
Microsoft is planning to reduce its workforce by targeting underperforming employees. The company has stated that it focuses on nurturing high-performing talent while the exact number of layoffs hasn’t been revealed. A spokesperson emphasized Microsoft’s dedication to employee growth and said that non-performance would be addressed with appropriate actions, according to Business Insider.
Ally Financial has confirmed plans to lay off around 500 employees or about 4.5 per cent of its 11,000-person workforce. The company explained that these layoffs are part of its ongoing efforts to optimize staffing while continuing to hire for other key areas of the business. Ally had previously carried out a similar round of layoffs in October 2023, according to the Charlotte Observer.
According to the latest data from Layoffs.fyi, 545 tech companies laid off 152,074 employees in 2024. In comparison, 1,193 companies let go of 264,220 employees in 2023. These workforce reductions reflect wider industry changes driven by technological advancements and economic pressures. While they highlight the challenges of automation, they also point to opportunities for growth and adaptation in a fast-changing job market.
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