As 2025 unfolds, the tech industry continues to grapple with widespread layoffs, a trend that began in 2022. Despite demonstrating resilience in some sectors, the industry has shed 428,449 jobs over the past two years, with no clear signs of slowing down.
According to Layoffs.fyi, 47 tech companies have already laid off over 11,663 employees in January and February 2025. Major corporations such as Meta, Amazon, Workday, Sonos, Asana, and Salesforce have made significant cuts, while several startups, including Cushion, Advisor Credit Exchange, Alza, Pandion, and Level, have shut down entirely. Other startups have also reduced staff considerably: Amsterdam-based Bird laid off 33% of its workforce, Hugging Face reduced its team by 4%, and Tabnine cut 18% of its employees.
UK and Germany Lead Europe’s Tech Layoffs
The UK and Germany have become new focal points for tech workforce reductions, trailing only the United States. In February, GoCardless, a fintech firm backed by Alphabet, laid off 20% of its employees, cutting staff from 764 to just over 600 since 2023. Meanwhile, fintech unicorn Zepz announced a similar 20% workforce reduction, affecting 200 employees globally.
Recently acquired by Entrust in April 2024, Onfido confirmed a 19% workforce reduction, bringing its employee count down to 224 from 275 in January 2023. The company stated that it continues to manage headcount and operational expenses in line with revenue.
In the Netherlands, Bird, a mobility startup, slashed 33% of its workforce (approximately 120 employees) to integrate AI-driven solutions and optimize global operations. German startups followed suit: Chrono24, a retail platform, reduced staff by 24% due to declining watch prices and market volatility, while Berlin-based HeyJobs laid off 90 employees amid economic uncertainty.
Meanwhile, French-American AI company Hugging Face reduced its workforce by 4%, primarily in its sales team. This reflects a broader trend among venture-backed open-source AI companies struggling to reach profitability.
AI: A Disruptor or a Scapegoat for Layoffs?
Recent European layoffs highlight a downsizing pattern, particularly in fintech. Two primary factors are driving this trend:
- The growing adoption of AI
- Competitive pressures from Big Tech firms
Meta, Microsoft, Amazon, and Salesforce have simultaneously laid off thousands of employees while aggressively investing in AI technologies. As businesses transition to AI-driven models, automation is replacing routine administrative roles, while also creating new opportunities in AI development, data science, and human-AI collaboration.
The World Economic Forum predicts that by 2025, 85 million jobs may disappear, but the shift could generate 97 million new positions, offering hope for the future workforce. However, AI is not the sole reason for these layoffs. Economic pressures, financial volatility, and cost-cutting strategies have forced companies to streamline operations, significantly impacting startups in fintech and AI.
More Tech Layoffs Expected in 2025
As Europe and the UK’s startup ecosystem faces continued workforce reductions, reports indicate mixed hiring trends. While the Netherlands and Germany report substantial layoffs, the UK shows both job cuts and hiring efforts. A recent survey found that 74% of UK tech firms had reduced their workforce by 5% to 25% over the past year, reflecting market adjustments and financial constraints.
Despite these challenges, some tech companies are still hiring. A report shows that 46% of IT and tech hiring managers plan to expand their teams in 2025, particularly in AI, cybersecurity, and emerging technologies. However, job stability has become a higher priority for many workers than salary, indicating a shift in workforce sentiment after years of volatility.
The European and UK tech landscape is likely to experience further workforce reductions in 2025, but selective hiring in high-demand fields such as AI and cybersecurity may offset some losses. While layoffs in fintech, retail tech, and sales roles persist, companies that embrace AI and automation effectively may stabilize their workforce in the long run.
As the industry evolves, tech professionals must adapt to AI-driven transformations while companies strike a balance between cost-cutting and innovation to remain competitive in an uncertain economic climate.
