Why This Time Is Different
What makes these layoffs especially tough is that they’re happening while many companies are still making good profits. Fears of recession and high interest rates drive companies to pursue cost-efficient growth, which has resulted in over 135,000 job cuts in the tech sector alone, according to AIHR’s 2025 HR trends analysis.
Companies aren’t just cutting jobs because they must—they’re cutting jobs because they want to. They believe smaller teams will be more productive. They think AI can do some of the work that people used to do. And they’re making bets that fewer employees can deliver better results.
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