Google Buyouts Could Point to More Tech Layoffs, as Sector Faces Heavy Job Losses

Google extended buyout offers to more employees this week, marking the latest move by Big Tech firms to lower headcounts. It may not be the last, as companies face pressure to reduce spending amid an uncertain economic environment, while also investing in AI infrastructure.

Tech has seen an exodus in 2025. The sector has announced nearly 75,000 job cuts in 2025 as of the end of May, according to a report last week from Challenger, Gray & Christmas, up from about 55,000 cuts in the same period in 2024.

Within the last two months alone, reports emerged that Microsoft (MSFT) is looking to cut 3% of its global workforce, or roughly 7,000 jobs, and Amazon (AMZN) reportedly trimmed about 100 jobs in its devices and services unit. Intel (INTC) intends to cut a whopping 20% of its workforce this year, as the embattled chipmaker attempts to turn around its business.

While software and cloud giants like Microsoft and Google parent Alphabet (GOOGL) may be seen as better-equipped to weather tariff-fueled uncertainty than many other companies with more direct exposure, worries about the economy in the face of rapidly shifting trade policies could still hold back demand, analysts have warned.

Another factor at play is huge AI infrastructure investments announced by Microsoft, Alphabet and others. That spending puts greater pressure on profit margins, D.A. Davidson analyst Gil Luria told Investopedia, meaning companies “are either keeping lower levels of hiring for personnel, or even sometimes taking action to reduce personnel.” Advancements also make it possible for companies to rely on smaller teams of software developers, Luria added.

Microsoft, for example, has said it plans to spend $80 billion in capital expenditures this year. Luria estimates that for every year Microsoft invests at current levels, there are 10,000 positions the company could have to either let go unfilled or cut.