New wave of job cuts hits global tech sector

A new wave of job cuts has hit the global technology industry, with software giant Microsoft becoming the latest firm to announce layoffs.

The Microsoft job cuts will reportedly impact approximately 6 000 people, or 3% of the company’s global workforce.

CNBC reported that the cuts will impact the market, irrespective of region.

Microsoft says the layoffs are part of efforts to streamline operations and invest more heavily in artificial intelligence (AI) technologies.

Similarly, cyber security firm CrowdStrike revealed it would eliminate 5% of its workforce, citing efficiencies gained through AI integration.

This week, Reuters reported that Amazon shed 100 jobs within its devices and services unit, and in April it reported that Meta would lay off “an unspecified number of employees” from its Reality Labs division “amid ongoing restructuring efforts”.

Meanwhile, Panasonic is said to be cutting 10 000 jobs globally (approximately 4% of its global workforce) between now and March 2026. NDTV reports that half of the 10 000 employees affected will be workers in Japan.

According to independent layoffs tracker Layoffs.fyi, close to 60 000 tech employees have been laid off by 127 tech companies this year.

After the COVID-19 pandemic, the tech industry experienced a notable shift – from explosive growth during lockdowns, to widespread job cuts beginning in late 2022 and continuing into 2025.

During the height of the pandemic, tech companies saw rapid growth due to increased demand for digital tools, e-commerce, remote work platforms and cloud services. Major firms like Amazon, Meta, Google and Microsoft hired aggressively, expanding their workforces to meet surging demand.

However, as pandemic-related demand waned and economic pressures mounted, tech firms began cutting costs and reducing their workforces.

Analysts believe AI is partly responsible for the latest job crisis, but not the root cause.

It is not immediately clear if there will be a significant impact on the technology sector, or job cuts in South Africa.

In response to questions about the global decision and any impact locally, Microsoft tells ITWeb: “Organisational adjustments are a necessary and regular part of managing our business. We will continue to prioritise and invest in strategic growth areas for our future and in support of our customers and partners.

“Our plan to invest R5.4 billion by the end of 2027 to expand our cloud and AI infrastructure in South Africa remains unchanged, regardless of occasional adjustments. Across the world, we continue to expand at a record pace to meet customer demand, and while we may strategically pace or adjust our infrastructure in some areas, we will continue to grow strongly in all regions, including South Africa.”

Mark Walker, IDC VP of data and analytics for Middle East, Turkey and Africa, and MD of IDC South Africa, says there could be tech job cuts locally, but this depends on the broader economic and commercial environment, factoring in economic and political uncertainty.

“Typically, international OEMs [original equipment manufacturers] will evaluate global headcount and cascade these to local operations, so the effect is spread… other factors regarding local growth prospects, costs of local skills and employment regulation also factor in the reductions/hiring.”

He adds that while global job cuts in technology can be attributed to AI to some extent, as firms reposition to ride the AI tech wave, the skill sets needed change and some jobs become redundant in the tech development space.

“There is also a parallel reskilling/rehiring process to capacitate the new requirements. Roles that can be automated in operations, sales and marketing are impacted as AI-based solutions that enable companies to do more with less are implemented.”