Wednesday, October 15, 2025

Future Federal Layoffs 10-15-25

Yes, layoffs will likely continue through 2025, with some sources predicting job cuts could reach over 1 million. Layoffs are occurring across various sectors, including tech, retail, and finance, driven by factors like the integration of AI, a desire for cost-cutting, and economic uncertainty. While the pace slowed in early 2025 compared to the previous year, the trend is accelerating and is a significant feature of the 2025 economic landscape.  

Key drivers for continued layoffs

Technological change:  Artificial intelligence is a major factor, with some companies expecting to reduce their workforce over the next five years due to AI. For instance, Amazon has stated it will need fewer people in some roles as it expands its use of AI. 

Economic pressures:  Some companies continue to implement cost-cutting measures amid economic uncertainties. Startups, in particular, may conduct layoffs to preserve cash and extend their runway. 

Company-specific restructuring: Many major companies, including Nike, Starbucks, Meta, Microsoft, and Intel, have trimmed their workforces in 2025 for a variety of reasons. 

Government actions: The U.S. federal government is also enacting layoffs, driven by restructuring efforts and shifting priorities, according to Government Executive and this Forbes article

What to expect

  • Layoffs will likely continue to occur, though they may not reach the extremely high levels seen during the 2020 pandemic. 
  • Staying adaptable and upskilling in areas of growth is recommended for long-term job security. 
  • The pace may fluctuate, with some managers predicting layoffs but most expecting them to be less than a 5% reduction of their workforce. 

https://www.google.com/search?sca_esv=49bb9eac7cf0c1b5&q=Federal+layoffs

Norb Leahy, Dunwoody GA Tea Party Leader

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