February 2025 witnessed a significant surge in layoffs within the tech industry, with major players like Meta, HP, and Salesforce leading the charge.
This wave of job cuts has raised questions about the underlying reasons behind these decisions and the broader implications for the tech sector.
In this detailed report, we will explore the factors driving these layoffs, the impact on employees, and the strategic shifts within these companies.
Meta’s Performance-Based Layoffs and HP’s Restructuring Plan
At the beginning of February, Meta announced layoffs that could impact around 5% of its workforce, approximately 3,600 employees.
These layoffs have been described as performance-based cuts, with notifications planned to be delivered throughout the following week.
Meta CEO Mark Zuckerberg had previously informed his staff that he planned to raise the bar on performance management and move out low performers faster.
However, it was reported that some employees with strong performance reviews were also affected.
On February 27, HP announced that it would cut up to 2,000 jobs as part of its ongoing restructuring plan.
The company currently has a workforce of around 58,000 employees across 59 countries.
HP introduced its restructuring plan named ‘Future Now’ in November 2022, with a goal of cutting 7,000 jobs.
With the fresh round of layoffs, the total number under the plan would come to 9,000.
The company expects to save about $300 million by the end of October 2025 with the cuts, although it may also incur about $150 million in restructuring costs.
HP’s decision comes after stronger financial gains in the first quarter and increased demand for AI-powered PCs.
Salesforce’s Layoffs: An AI-Driven Restructuring
Salesforce also joined the layoff surge, cutting over 1,000 jobs from various departments as part of its restructuring to prioritize AI initiatives.
This move comes at a time when the company was on a hiring spree for sales roles to meet the needs of their primary AI offering, Agentforce.
The layoffs are part of Salesforce’s broader strategy to invest in AI and streamline operations to remain competitive in the rapidly evolving tech landscape.
Economic Uncertainty and AI Adoption
The increasing adoption of AI solutions and economic uncertainty are among the key reasons for the job cuts in the tech sector.
The spate of layoffs in February saw 46 companies lay off 15,994 employees, according to layoffs tracker Layoffs.fyi.
When compared to January, layoffs surged in February, resulting in a staggering 184% increase in the number of affected employees.
Last month, 25 companies reportedly fired 5,641 employees.
Companies are increasingly focusing on AI and automation to drive efficiency and innovation.
However, these changes come at the expense of significant workforce reductions.
The impact on employees is profound, with many facing uncertainty and challenges in finding new employment opportunities.
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